Position refers to the amount of funds owned or borrowed by investors. Position is a kind of market agreement, which promises to buy and sell the initial position of foreign exchange contracts, and those who buy foreign exchange contracts are long and in the expected position; Selling foreign exchange contracts is an empty position and is in the expected position.
A long position refers to a position that can make a profit when the price rises. (←→ sell short positions, short positions)
As the name implies, you have a product in your hand, commonly known as a long position. In this case, your income will increase with the increase of the price of the basic assets, and your income will decrease (lose money) with the decrease of the price of the basic assets.
A short position refers to a position that can make a profit when the price falls. (←→ Buy long, long)
It is a short position, commonly known as a short position, that is, you sell a product. In this case, your income will generally decrease (lose) with the increase of the underlying asset price, and vice versa. This is easy to understand. Think of yourself as the seller of something. You have sold something at a certain price in advance. When the price of an item rises above the price you sell, it must be a loss.
When the underlying asset price shows a downward trend, futures bulls will suffer losses. The reason is that the futures contract you hold has a fixed delivery price, which means that your buying cost has been determined, but the price of what you want to buy has decreased.
When the underlying asset price shows a downward trend, futures bulls will suffer losses. The reason is that the futures contract has fixed the delivery price, that is, the purchase cost is determined, but the price of the underlying assets has dropped, which means that the original profit margin has become smaller and the futures bulls will lose money.