Futures opening and closing are one of the most basic concepts in futures trading. Opening position means that investors buy or sell futures contracts, and closing position means that investors sell or buy the same number of futures contracts to close positions. The purpose of opening and closing positions is to obtain return on investment and realize risk management.

When investors open futures, they should first choose a futures exchange and entrust the required contracts at the opening moment. If this entrustment is accepted by another investor, then this investor can open the position immediately. From this moment on, investors become the holders of this futures contract. Investors can choose to close their positions or hold contracts at any time until the contract expires.

Like opening positions, closed futures also need to be traded through futures exchanges. Holders can choose to sell their contracts at market prices before the expiration date, or choose to deliver them to the exchange on the expiration date. If the holder chooses to sell his contract at the market price, he will make a profit when the market price is higher than the purchase price; If the market price is lower than the purchase price, the holder will face losses. It should be noted that opening and closing operations will inevitably bring costs, usually including handling fees and deposits.