Holding positions is a common word in the financial industry, which is often used in finance, securities, stocks and futures trading. For example, when a futures account opens a position, the position held after buying a futures contract is called a long position, referred to as a long position; The positions held after selling futures contracts are called short positions, referred to as short positions.
The difference between open long contracts and open short contracts is called net position. This only exists in futures trading, but not in spot trading.
In foreign exchange transactions, "opening a position" means opening a position, also known as exposure, that is, buying one currency and selling another at the same time. After the opening, one currency is long (long) and the other currency is short (short).
Choosing the right exchange rate level and the timing of opening positions are the premise of profit. If the timing of entering the market is good, the chances of profit will be great; On the other hand, if the timing of entering the market is improper, it is prone to losses. Net position refers to the trading difference between one currency and another after the opening.
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Precautions for using location
1, the position should not be too large.
Try not to be too big when opening positions. The bigger the position, the more dangerous it is when trading, which is not conducive to rational management operation. Traders can also choose to open positions in stages, and investors can also use pyramids to open positions. The amount of each position is smaller than the last one. Don't add positions on the basis of losses.
2. Take advantage of opportunities to open positions
Traders can open positions when the market is in a trend and try to avoid opening positions when the market goes against the trend. At this time, the market risk is relatively high. Traders should be cautious when adding orders or even not adding orders, which can reduce possible losses.
3. Close the position in time
In the process of trading, we should pay close attention to our positions in time, and close our positions in time when there are abnormal changes in the market or a turning point is predicted according to technical indicators.
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