Position is capital, which refers to the sum of all available funds of the bank at present. It mainly includes excess reserves deposited in the central bank, net interbank settlement, bank deposits and cash. The goal of position management is to reduce the position occupation as much as possible and avoid idle waste of funds on the premise of ensuring liquidity.
When a financial institution buys an asset, it has a long position; On the contrary, if a financial institution sells an asset to another party and agrees to deliver it in the future, it will get a short position and the financial institution will also be at risk. Risk aversion can be achieved through financial transactions, which can offset long positions by obtaining additional short positions, and can also offset short positions by obtaining additional long positions.
1. position, also known as "head lining", which means money, 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".
Second, the position is a commonly used word in the financial industry, which is often used in financial transactions such as securities, stocks and futures.
For example, when futures trading opens, the positions held after buying futures contracts are called long positions, referred to as long positions; The positions held after selling futures contracts are called short positions, referred to as short positions. The difference between open long contracts and open short contracts is called net position. This only exists in futures trading, but not in spot trading. For example, if an investor buys a euro long contract, it is said that the investor holds a euro long contract; If you short the euro, that means investors are short the euro. When investors sell their short positions in euros back to the market, it is called liquidation.
In foreign currency transactions, "opening a position" means opening a position. Opening a position, also known as exposure, is the act of buying one currency and selling another. After the opening, one currency is long (long) and the other currency is short (short). Choosing the right exchange rate level and the timing of opening positions are the premise of profit. If the timing of entering the market is good, the chances of profit will be great; On the other hand, if the timing of entering the market is improper, it is prone to losses. Net position refers to the trading difference between one currency and another after the opening. In addition, there are statements from the financial industry, such as tying positions and borrowing positions. There are many kinds of holding dates, such as the first holding date (the first day of the futures delivery process), and most of them refer to the day when the money is used.