Before the expiration of physical delivery or cash delivery, investors can voluntarily decide to buy and sell futures contracts according to market conditions and personal wishes. However, investors (bulls or bears) hold futures contracts without performing reverse operations (selling or buying) with the same delivery month and quantity. This operation is called "holding positions".

For the algorithm of opening positions, it is calculated in China. The increase in positions represents the inflow of funds into the futures market, and vice versa. The impact on the price should be analyzed together with the volume.

Price increase:

1, the volume and position increased, and the price rose, indicating that the price may continue to rise.

2. The decrease in trading volume and positions and the increase in prices indicate that prices will rise in the short term and will fall back soon.

3. The increase of trading volume, the decrease of positions and the rise of prices indicate that prices will fall immediately.

Price drop:

1, volume and positions increase, prices fall, and prices may fall in the short term.

2. Turnover and positions decrease, prices fall, and prices will continue to fall in the short term.

3. With the increase of trading volume, positions and prices decrease, and prices may increase.

Changes in total position:

For investors, their position is naturally clear. The total position of the whole market is actually there. In the market information released by the exchange, there is a column of "total positions", which refers to the total number of "open positions" of all investors in futures contracts.

Traders keep opening and closing positions in the process of trading, so the total position is constantly changing. As the total position becomes larger or smaller, it reflects the market's interest in the contract and becomes an indicator that investors are very concerned about.

If the total positions increase all the way, it shows that both long and short sides are building positions, market traders are more and more interested in contracts, and more and more funds are pouring into contract transactions;

On the contrary, when the total position decreases all the way, it shows that both long and short positions are closing positions and traders' interest in the contract is declining. On the other hand, when the volume increases, the total position changes little, indicating that the transaction is mainly based on changing hands.

Refer to the above? Baidu Encyclopedia-Position