Position is a word often used in the financial field. At first glance, it's a little hard to understand. In fact, it can be simply considered as a usable currency.

In futures trading, the funds or positions held after buying futures contracts are called long positions, and the positions held after selling futures contracts are called short positions. The difference between open long contracts and short contracts is called net position.

In foreign currency transactions, positions are also used. Opening a position means buying one currency and selling another at the same time, which is generally called exposure, and can also be called opening a position. After the position is established, one currency is long and the other currency is short, which is called shorting. The trading difference between two currencies is called net position.

Long position, commonly known as long buying, generally means that investors are bullish in the futures market, then buy futures contracts and earn profits after the price rises. In addition, in all the receipts and payments of the bank that day, the income is greater than the expenditure, which is called "multi-warehouse". If the expenditure is greater than the income, it is called "short position"

Characteristics of long positions:

First, bulls mean that investors are optimistic about the trend of the market, so they buy first and then sell to earn profits or price differences; Short position means that investors or speculators regard the future trend as a decline, so they throw out their securities and wait for an opportunity to buy them.

Second, the position is a market agreement that promises to buy and sell foreign exchange contracts. Judging from its English position, it means position. Buying foreign exchange contracts is long and in an expected position; Selling foreign exchange contracts is an empty position and is in the expected position.

Short covering/Short Position is an investment position generated by selling short positions. Since this position has not been written off, it can benefit from the decline in market prices. That is, investors put forward the selling price in advance because they expect the price to fall, or make selling more than buying.

Short characteristics: short positions can be closed by buying equal financial instruments. Buying because of short positions is called "short covering". Selling without establishing a long position is called "short selling"