What do you mean by short? Many people seem to be confused about various liquidation terms, and once they are confused, they are prone to make mistakes. Therefore, Bian Xiao specially sorted out what short positions are, hoping to help everyone.

What do you mean by short position?

Short closing refers to buying and closing a futures contract that was originally sold short.

Short position refers to the increase of positions, but the added value of positions is less than the current quantity, which belongs to active selling; Long position closing refers to reducing positions, but the value-added of positions is less than the current quantity, which belongs to active selling; Short position means that the position is reduced, but the value-added of the position is less than the current quantity, which belongs to active buying.

Short position refers to the repurchase of sold securities or assets to settle short positions. Short position closing refers to investing in the same commodity futures contract with the same delivery period and closing short positions.

Suppose three people are counterparties, in which A has five long positions, B has five short positions and C has no position; If Party A wants to close some positions, it will sell 3 positions; Party C thinks that the market will fall and sells 2 positions; If Party B also wants to close the position, it will sell five positions at the current price (selling price), and the disk shows: empty (short), spot transaction 10, position difference -6. If it is a long position, it is to take B as the active position, and A can close the position.

What do you mean by short position and short position?

Short positions refer to investors selling a certain number of futures contracts. Short position closing refers to investing in the same commodity futures contract with the same delivery period and closing short positions.

Simply put, it is short position and liquidation. Short positions have increased, but the added value of positions is less than the current position, which belongs to active selling; Short positions decrease, but the added value of positions is less than the current quantity, which belongs to active buying.

Open the warehouse, open the warehouse. There are usually two operating modes in trading, one is bullish (buyer) and the other is bearish (seller). Whether you are long or short, placing an order is called "opening a position". It can also be understood that in trading, whether buying or selling, all new positions are called opening positions.

As a single admission opportunity, assuming that there is a certain amount of funds, the position can be allocated.

There are different ways to open a warehouse.

1, subjective setting;

2. Determine the intervention amount according to the set amount of single transaction funds;

3. Determine the number of interventions according to the risk tolerance (stop loss amount).

Here, I agree with the third way, that is, according to the risk tolerance and the size of the stop loss space, the number of open positions is determined.

Futures terminology: the trading behavior of starting to buy or sell futures contracts is called "opening positions" or "establishing trading positions"