Futures trading is an advanced trading method based on spot trading and forward contract trading. In order to transfer the risk of market price fluctuation, it refers to the form of buying and selling futures contracts in an open competition on commodity exchanges through brokers.
Futures, usually futures contracts, are contracts. A standardized contract made by a futures exchange to deliver a certain amount of subject matter at a specific time and place in the future. This subject matter, also known as the underlying asset, can be a commodity, such as copper or crude oil, a financial instrument, such as foreign exchange and bonds, or a financial indicator, such as three-month interbank offered rate or stock index. Futures trading is an inevitable product of the development of market economy to a certain stage.
Futures trading is the activity or behavior of buying and selling futures contracts. Pay attention to the difference. Futures delivery is another concept. Futures delivery is the exchange activity or behavior of the subject matter (basic assets) stipulated in the futures contract on the maturity date.
Futures can be bought first and then sold, or they can be sold first and then bought for hedging. Therefore, futures should create a new concept and distinguish between the first trading behavior and the trading direction. The trading direction creates the concepts of buy more and short selling, and the trading behavior creates the concepts of opening and closing positions. Buying more refers to buying futures contracts (multiple positions), and short selling refers to selling futures contracts (short positions). Buying more in the same month and buying short positions are just two sides of the same contract, not two kinds of contracts.
For bearish selling futures contracts, the market generally calls it "short selling", but it is also called "short selling". The so-called "short selling" means selling short, and the "empty" here means selling a paper contract instead of a physical object. "Short" here refers to buying a put contract, and "short" means "down", which is different from the previous "short". It can be seen that there is nothing wrong with the market's understanding of buying more and short selling, which is easy to cause ambiguity. Readers or investors should be able to distinguish the meaning to be expressed in combination with the context when meeting.
Multi-position refers to a bullish contract, also known as multi-position or long position, that is, investors open positions to buy futures contracts when commodity prices rise, commonly known as buy more, and investors holding multi-positions are commonly known as long positions. Short refers to bearish contracts, also known as short positions or short positions, that is, investors open positions to sell futures contracts when commodity prices fall, commonly known as short selling.