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Do you know these futures trading terms?
Different from the stock market, futures is a two-way trading mechanism, which leads to some different terms from stock trading. Futures can be bought first and then sold, or they can be sold first and then bought for hedging. Therefore, futures should create a new concept and distinguish between the first trading behavior and the trading direction. The trading direction creates the concepts of buy more and short selling, and the trading behavior creates the concepts of opening and closing positions. Buying more refers to buying futures contracts (multiple positions), and short selling refers to selling futures contracts (short positions). Buying more in the same month and buying short positions are just two sides of the same contract, not two kinds of contracts.

For bullish futures contracts, the market generally calls them "buy more", but they are also called "short". The so-called "buy more" is bullish buying, and the "more" here is bullish. Short is easy to be ambiguous, because "buy" means bullish, and "empty" means bearish. If you are bullish and use "short", then "short" does not mean short, it means buying a paper contract, not a physical commodity. For bearish selling futures contracts, the market generally calls it "short selling", but it is also called "short selling". The so-called "short selling" means selling short, and the "empty" here means selling a paper contract instead of a physical object. "Short" here refers to buying a put contract, and "short" means "down", which is different from the previous "short". It can be seen that the market's understanding of buying more and short selling is not wrong, which is easy to cause ambiguity. Readers or investors should be able to distinguish the meaning to be expressed in combination with the context when meeting.

Multi-position refers to a bullish contract, also known as multi-position or long position, that is, investors open positions to buy futures contracts when commodity prices rise, commonly known as buy more, and investors holding multi-positions are commonly known as long positions. Short refers to bearish contracts, also known as short orders or short positions, that is, investors open positions to sell futures contracts when commodity prices fall, commonly known as short selling, and investors holding short positions are commonly known as short positions.

Opening a position refers to the behavior of investors buying or selling futures contracts for the first time. In the commodity futures market, when it is bullish, you can open a position to buy a futures contract, that is, buy more, which has the right to buy the goods with the quantity and quality specified in the contract at the time specified in the contract, but if you still hold more positions at the end of the last trading day, the right becomes an obligation. When you are bearish, you can open a position to sell futures contracts, that is, short selling, that is, you have the right to sell the goods with the quantity and quality specified in the contract at the time specified in the contract, but if you still hold short positions at the end of the last trading day, the right becomes an obligation. The right can be exercised (held until the last trading day) or waived (closed in the middle), but the obligation must be fulfilled, otherwise it will be regarded as a breach of contract. Stock index futures are cash delivery and generally do not involve default.

Closing position refers to the trading behavior of investors in reverse operation. If you hold multiple positions, you can sell the same number of futures contracts to wash away multiple positions in your hand. It can be seen that there is selling pressure in multi-position liquidation, which will lead to price decline. If the original position is short, you can buy the same number of futures contracts to flush out the short position in your hand. It can be seen that short positions have the power to buy up and push up prices. It is precisely because of this that before the futures market turns, there will generally be a tragic situation of killing more and killing more.