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

Buying or selling a futures contract in the futures market is equivalent to signing a forward delivery contract. If the 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

It means that investors judge that the currency price will rise and buy currencies. The behavior of investors to gradually expand the scale of securities investment over a period of time based on their judgment of the market or the recommendations of investment analysts.

Closing a position refers to the act of a futures trader buying or selling a futures contract of the same type, quantity and delivery month as the futures contract he holds but in the opposite trading direction to close a futures transaction. Simply put, it is " Those who were originally bought are sold, and those who were originally sold (short-selling) are bought. ”

Only a few people make physical delivery, and most speculators and hedgers usually trade at the end. Before the end of the day, choose an opportunity to sell the purchased futures contract 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.

Position closing refers to the behavior of futures investors buying or selling stock index futures contracts of the same variety, quantity and delivery month as the stock index futures contracts they hold but with opposite trading directions to close stock index futures transactions. It can also be understood as: position closing refers to the transaction behavior of traders closing their positions, and the way of closing is to make opposite hedging transactions in the direction of the position.

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

Hedging and liquidation means that a futures investment enterprise purchases and sells futures contracts of the same delivery month on the same futures exchange to settle previously sold or purchased futures contracts.

Forced liquidation means that a third party other than the position holder (futures exchange or futures brokerage company) forcibly closes the position of the position holder, also known as being liquidated or liquidated.

There are many reasons for forced liquidation in futures trading, such as customers' failure to increase trading margin in a timely manner, violation of trading position limits and other irregularities, temporary changes in policies or trading rules, etc. In the regulated futures market, the most common force liquidation occurs due to insufficient customer trading margin. Specifically, it means that when the trading margin required for the client's position contract is insufficient, and the client fails to promptly add the corresponding margin or actively reduce the position according to the notice of the futures company, and the market conditions are still developing in an unfavorable direction for the position, the futures company shall To avoid the expansion of losses and force the liquidation of part or all of the customer's positions, the proceeds will be used to fill the margin gap.

Stop-loss closing: When there is a certain profit, the stop-loss protection cost is raised, and then the stop-loss is raised according to the technical graphics as the market develops until the stop-loss is knocked down. This method is suitable for unilateral market conditions.

2. Close the position at the second top: When it is observed that the price is unable to reach new highs and there are signs of falling, the position will be closed. This position closing method is an improved and upgraded version of the stop loss closing method, which can capture the profits to the greatest extent.

3. Close the position at support and resistance: close the position when the price reaches or is about to reach the next support and resistance level, without waiting for the impact result. This method is suitable for market shocks or rebounding during pullbacks. When encountering a unilateral position, most of the support and resistance are ineffective, and you will miss out on a lot of profits.

4. Target closing: Treat every order as a gamble with a high probability of winning. Set a stop loss and a take profit at the same time when placing an order. The take profit target is at least three times the stop loss. At the same time, Open positions are adjusted according to the fixed loss amount. When holding a certain amount of profit, the stop loss protection cost will be raised. Assuming that the profit and loss ratio is 3:1 (this is the minimum), the order success rate only needs to reach 25% to reach the breakeven point. Assuming the success rate is 7:3, then the overall risk-to-report ratio of the system is (7*3): (3*1), which is 7:1. This method is also most suitable for volatile market conditions.

To reduce a position means to sell part of the stocks held.

Reduce positions when volume rises: When a stock rises, there is a large amount of trading volume, and buyers and sellers compete. If you pay attention to the principle of caution, you can reduce positions and wait and see.