Opening price: the price at which stocks are bought

Building a position is also called opening a position, which means that a trader newly buys or sells a certain number of futures contracts.

The whole process of futures trading can be summarized as opening a position, holding a position, closing a position or physical delivery. Buying or selling a futures contract in the futures market is equivalent to signing a forward delivery contract. If a trader keeps this futures contract until the end of the last trading day, he must settle the futures transaction through physical delivery or cash settlement. However, only a small number of people carry out physical delivery. Most speculators and hedgers usually choose the opportunity to sell the purchased futures contracts before the end of the last trading day. Or buy back the sold futures contract. That is, a futures transaction of equal quantity and opposite direction is used to offset the original futures contract, thereby closing the futures transaction and releasing the obligation for physical delivery upon expiration. This act of buying back a sold contract or selling a bought contract is called closing a position. A contract that has not yet been closed after a position is opened is called an open contract or open position, also called a position.

After opening a position, traders can choose two ways to close the futures contract: either choose an opportunity to close the position, or keep it until the last trading day and make physical delivery