1. Opening positions is also called opening positions. Opening a position means that a futures trader buys or sells a certain number of futures contracts. In the futures market, buying and selling a futures contract is equivalent to signing a forward delivery contract. Because futures trading has a two-way trading mechanism, there are two kinds of buying and selling. ("Opening a position" in futures trading is equivalent to "buying" in stock trading).
Two, liquidation refers to the futures investors in order to close a futures contract transaction before the physical delivery (that is, before the expiration of the futures contract period), so as to close the position or reverse the sale (buy when opening the position; Opening is selling, closing is buying. ) Trading futures contracts with the same variety, quantity and delivery month as those bought or sold in the original position.
Because futures trading has a two-way trading mechanism, there are two kinds of closing positions corresponding to opening positions: buying closing positions (corresponding to selling opening positions) and selling closing positions (corresponding to buying opening positions). Investors can choose to close their positions in advance before the contract expires; If you hold the contract until the last trading day, you must settle the futures trading through cash delivery. Closing futures trading is equivalent to selling stocks. In the transaction, the position held is opposite to the price trend, and the liquidation measures taken to prevent excessive losses are also called "lightening positions".
Third, the essence of locking positions is to close positions, but its function is mainly a means taken under special circumstances, such as a special means taken when it is too late to close positions when it is rising or falling rapidly, but locking positions will pay more transaction costs than closing positions. For example, in the early stage, the main force entered a certain variety, and the warehouse receipt needs to be established on both sides, and most of them need to be locked. Locking warehouses can sometimes effectively achieve the main purpose.
Four, the futures market, is a financial market that trades according to the agreement reached and delivers on the scheduled date. The obvious difference between spot and futures is that the delivery date of futures is in the future, and the conditions of delivery and payment, such as price, quantity, method and place, are stipulated in the spot contract, and both commodities and securities can be traded in the futures market.
Although the contract has been signed, the goods bought and sold by both parties may be in transit, may be in production, and may not even be put into production. The seller may or may not have goods or securities.