Closing position refers to the behavior of futures investors to buy or sell stock index futures contracts with the same variety, quantity and delivery month, but in the opposite direction, in order to close the stock index futures trading.

Closing a position in futures trading is equivalent to selling in stock trading. Because futures trading has a two-way trading mechanism, there are two kinds of closing positions: buying and closing positions (corresponding to selling and opening positions) and selling and closing positions (corresponding to buying and opening positions).

location

The open contract of stock index futures investors after opening positions is called open contract, also known as open position. After the stock index futures investors open their positions, there are two ways to close the stock index futures contract: either close the position in advance or hold it until the last trading day for cash delivery.

Change hands transaction

There are two kinds of hand-changing transactions: "long hand-changing" and "short hand-changing". When an investor who originally held a long position sold the position and a new investor opened a position to buy it, it was called "multi-position changing hands". "Short positions change hands" means that investors who originally held short positions are buying and closing positions, and new short positions are opened and sold.

Total market position

"Total market position" means the total number of "open positions" (including long and short positions) of all investors in futures contracts. Investors keep opening and closing positions when trading, so the total market positions are constantly changing. The total position of stock index futures market is calculated unilaterally, which is different from the bilateral calculation of commodity futures market at present. For example, when trading a contract, one investor buys 1 contract and holds it, and another investor sells 1 contract and holds it. The total position in the stock index futures market is shown as 1 lot, while the total position in the commodity futures market is shown as 2 lots. The total market position is an important reference index for institutional investors to enter the market.