The meaning of 1. position:
Position is a financial term that refers to the quantity of a specific commodity, security, currency, etc. Held or owned by an individual or entity. Chinese translated it as "status", which originated from "Yuan Datou" used as currency in the old society. Every ten piles into an inch. Position is a market agreement, which promises to buy and sell the initial position of the contract, and the buyer of the contract is long and expected to rise; The seller of the contract is short and in the expected position.
2. The meaning of future positions:
Future positions, also known as "position". Refers to the position held by futures investors. Holding multiple orders becomes "long" and empty orders become short. The difference between multiple orders and empty orders becomes a "net position". In banking, position is also called "head lining", which means money, and it is a popular term in financial and commercial circles. If the bank's income exceeds its expenditure in all the receipts and payments of the day, it is called "multi-position"; If the payment exceeds its income, it is called a "short position". The behavior of predicting the number and number of such positions is called "position rolling". The act of trying to transfer funds everywhere is called "changing positions" If the temporarily unused funds are greater than the required amount, it is called "loose position", and if the required funds are greater than the idle amount, it is called "tight position".
3. The meaning of position management:
Position management refers to setting the proportion of account funds used for futures trading margin and the proportion of margin allocated to various trading varieties. The content of position management Position management is the core part of building a futures trading system, because the size and distribution of positions determine the trading risks faced by accounts. In actual trading, it is impossible for investors to get a trading model with a 100% chance of winning. If there is no reasonable position management method, one or two losses may cause fatal losses, while scientific position management can reduce the losses caused by misjudgment and reduce the destruction rate of account transactions. The core part of the trading system is position management, because the number of positions directly affects the size of profit and loss and the speed of account destruction. Scientific position management can help investors gain the ability to survive in the futures market for a long time.