Opening a position means building a position, which means buying or selling one or more new contracts. Closing a position means closing the previously opened contract in reverse and ending this contract. If the position was previously opened with a buy contract, the sell contract will be selected when closing the position. If the position was opened with a sell contract, the buy contract will be selected when the position is closed. Opening and closing positions are generally used in commodity futures markets. The process of futures trading

The process of futures trading is divided into opening, holding, closing or delivery. First select the futures type to be traded and then open a position or a certain number of contracts. This is equivalent to signing a forward delivery contract for this commodity. The next step is to hold the contract. If the investor holds the contract until the delivery date, physical delivery can be made after settling the remaining funds. However, physical delivery is generally rare in the futures market, and investors will choose to do so on the delivery day. The contract is closed before, that is, the position is closed. After the position is closed, the complete transaction of a futures contract is completed. In addition, if some investors continue to be optimistic or bearish about the market situation of a certain product, they can move their positions before the expiration of the delivery date to achieve the purpose of continuing to hold positions.