After determining the variety of futures trading, it involves many terms, such as which contract month to choose for trading, the proportion of initial investment, and the general judgment of daily settlement of profits and losses.
For securities investors, these technical terms are rarely encountered in the past, so it is necessary to understand and master these basic knowledge before participating in stock index futures trading.
Opening and closing positions should be distinguished:
In futures trading, opening position is a very important trading parameter, but there is no such parameter in securities trading.
In stock index futures trading, whether buying or selling is called opening a position. Generally speaking, it is to turn money into futures contracts. After a futures contract is concluded, investors hold positions in the futures contract, which is called positions. Hold multiple orders after opening positions, and hold empty orders after opening positions.
After the fluctuation of futures contract price reaches your profit target price or stop loss price, you want to cash out your contract position as funds. At this time, it is necessary to close the position, which is the trading behavior of closing the position. The way to close a position is to do the opposite. When you hold multiple open positions to buy, your liquidation is selling liquidation, while when you hold short positions to sell, your liquidation is buying liquidation.
Because of the different meanings of opening and closing, traders must specify whether to open or close stock index futures contracts. Securities investors often don't pay attention to this point, and it is easy to turn closing positions into opening positions, so that not only the positions are not cashed into funds, but the reverse positions are increased and the occupation of the margin is increased.