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What are closing positions and cutting positions?
1. In futures trading, there are usually two operating modes, one is bullish (buyer) and the other is bearish (seller). Whether you are long or short, placing an order is called "opening a position". 2. Close position = close position, the original purchase will be sold, and the original sale (short sale) will be bought. 3. Reduce the position (cut the meat and stop the loss): after buying the currency (or stock or futures), ① the price of the currency (or stock or futures) falls, and investors sell the currency (or stock) at a low price to avoid the loss from expanding; (2) Selling money (or stocks) at low prices for capital turnover. This kind of investment behavior is called lightening the position, also called cutting the meat to stop the loss. 4. Short position means that after the margin is removed, the loss is greater than the available funds in your account. After the company is forced to draw a tie, the remaining funds are the total funds MINUS your losses, and generally there will be a part left. 5. Short selling is an investment term for stocks and futures. For example, when you expect a stock to fall in the future, sell the stock you own when the current price is high (the actual transaction is to buy a put contract), and then buy it when the stock price falls to a certain extent and return it to the seller at the current price, so the difference is your profit. Short selling is a way of operation in the stock and futures markets. Cutting positions: the first skill that foreign exchange investors must learn. Finally, the loss is still nominal. Once the position is closed, the loss will become a reality. From experience, lightening positions will cause mental stress to investors. Any feeling of winning by luck, waiting for the exchange rate to return or refusing to admit defeat will hinder the determination to lighten up the position and may incur serious losses. Simply put, it is to sell at a loss. It must be strictly observed.