Net short position: total short position minus total long position. For example, there are 5000 long positions in the market, 1 000 short positions, 5000 long positions and 5000 short positions hedge each other, and the remaining 5000 short positions cannot be hedged, which is called net short position. The short position is the key factor to suppress the price decline, and the short position won the position after the long-short power contest was completed.
Net long position: total long position minus total short position. For example, there are 1000 bulls and 7000 shorts in the market. At this time, the mutual hedging between 7000 bulls and 7000 bears is equal to zero, while the redundant 3000 bulls cannot be hedged, which is called net bulls. The number of net long positions is the key factor to push up the price increase.
Extended data:
1. The scale of the futures market and the variety of listed transactions are limited, which affects the overall function of the futures market.
2. The futures market is too speculative and the overall efficiency of the futures market is not high.
According to the analysis of modern economics, the futures market belongs to the category of "incomplete market". In this market, the level of commodity prices largely depends on the expectations of buyers and sellers for future prices. It is precisely because of the lack of varieties in the futures market that a large number of enterprises that need to avoid price risks have no suitable safe havens and become the source of irrational speculation.
The important function of futures market in market economy is to make all kinds of producers and businessmen avoid price risks through hedging, so as to feel at ease in the operation of spot market.
Market participants are not mature enough.
3. The futures market lacks risk management tools and the mechanism needs to be improved.
5. The supervision mode does not adapt to the development trend of the futures market.
6. The research of futures theory is not taken seriously, and the new deep-seated problems encountered in practice cannot be solved in time.
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