What are the consequences of opening a short position, and what does it mean to open a short positio

Updated on Financial 2024-05-26
9 answers
  1. Anonymous users2024-02-11

    Short deleveraging is bearish, and if the bears are strong, then the later trend should be aware of the risks.

  2. Anonymous users2024-02-10

    A short position is when an investor sells a certain number of new contracts. Short position closing refers to the closing of the **contract that was originally sold short. Short position opening refers to an increase in the open position, but the increase in the open interest is less than the current volume, and it is an active sell order; Long position closing refers to the decrease in open interest, but the increase in the open interest is less than the present volume, and it is an active sell order; Closing a short position refers to a decrease in the open interest, but the increase in the open interest is less than the present volume, and it is an active buying order.

    Investors can choose to close their positions early before the contract expires; If you hold the contract until the last trading day, you must settle the trade by cash settlement.

  3. Anonymous users2024-02-09

    A short position is when an investor sells a certain number of new contracts. Closing a short position refers to investing in the purchase of the same commodity** contract with the same delivery period to close the short position.

    To put it simply, it is a short position and a position is closed. The open short position increases, but the increase in the open position is less than the present volume, and it is an active sell order; The short position is closed, but the increase in the value of the open interest is less than the present volume, and it is an active buying order.

    Opening a position means opening a position. There are usually two ways to operate in trading, one is to go long (buyer) and the other is to go short (seller) to be bearish. Whether you are going long or short, placing an order to buy or sell is called "opening a position".

    It can also be understood that in trading, whether it is buying or selling, any new position is called an open position.

    Treat it as a single entry opportunity, and assume that there is a certain amount of sufficient funds to allocate the amount of positions.

    There are different ways to set the amount of open positions:

    1. Subjective setting;

    2. Decide the amount of intervention according to the set amount of single trading funds;

    3. Decide the amount of intervention according to the risk tolerance (stop loss amount).

    The third option is in favor here, i.e. the number of open positions is determined according to the risk tolerance and the size of the stop loss space.

    Terminology: The act of opening or selling a contract is referred to as "opening a position" or "opening a position".

  4. Anonymous users2024-02-08

    It seems that you still don't understand what emptiness is. There are doubts.

    Starting from **, it is generally known that to do a one-hand transaction, that is, to sell at a low price, and then to sell, so as to make money, then this behavior is called long open position, long position closed. The direction of the trade is to go up. In layman's terms, it's "go long".

    And then let's talk about the "shorting" that you don't understand, which is generally not understood, and this practice cannot be operated in **, because ** is a one-way transaction, and you can only make a rising order, not a falling order. "Shorting" is to make a bearish order in **, and then close the list at a low price, so as to make money, and the trading direction is to fall. Such a trading behavior is that the short position is opened and the short position is closed.

    In layman's terms, it's "shorting".

    This is clearly understood, the short change of hands is easy to understand, this statement is actually the execution of 2 operations, the first is the short position closed and then the long position is opened, because the operation point is at the same point, so the transaction details are represented by the short change of hands.

  5. Anonymous users2024-02-07

    Opening a position, also known as opening a position, refers to the investor's new or new sale of a certain number of stock index contracts. If the investor holds the stock index contract until the last trading day, he must close the trade by cash settlement.

    Liquidation refers to the act of closing the stock index ** transaction by **investor ** or selling the stock index ** contract with the same variety, quantity and delivery month as the ** contract it holds, but the trading direction is opposite.

    The position held after selling the stock index** contract is called a short position, or short position for short. Investors who hold long positions think that the stock index **contract** will rise, so they will buy it; Conversely, investors who hold short positions believe that the stock index contract will be, so they sell.

  6. Anonymous users2024-02-06

    Closing a position means selling or buying back the sale of ** before the last trading day. Closing a long position means selling a long position of **. Physical delivery is not to actively close the position, and wait for the last trading day to end the ** transaction.

    Opening a short position is the opening of a new buy and sell contract, so the client needs to pay a margin to ensure the performance of the contract, and the opening trade increases the number of contracts held by the client.

  7. Anonymous users2024-02-05

    To put it simply, opening a short position is to buy a short position; Closing a short position is a close of a buy and fall order.

  8. Anonymous users2024-02-04

    Opening and closing positions Trading tips 1, 100 100 long changes hands When the opening position and the closing position are the same, it is called changing hands; Both open and closed positions are long calls for long turnovers. 2. 100 100 short change hands When the opening position and the closing position are the same, it is called changing hands; Both the opening and closing of positions are short orders for short hand changes. 3. 680 20 long open position When the open position (680) is greater than the closing position (20), it is called an open position, and the long open position is greater than the short open position.

    4. 680 20 Short open position When the open position (680) is greater than the closing position (20), it is called the open position, and the short open position is greater than the long open position. 5. 160 840 long position closing When the closing position (840) is greater than the opening position (160), it is called closing, and the long position closed is greater than the short position closed. 6. 160 840 Short Position Closing When the closing position (840) is greater than the opening position (160), it is called closing, and the short position is greater than the long position is closed.

  9. Anonymous users2024-02-03

    To put it simply, when a company creates new shares and ** them, the current shareholders now own a smaller percentage of the company. However, since the company is now more valuable (because it makes money through new shares), the actual dollar value of the previous ** remains unchanged. Sure enough, I'm a little worried about it.

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A ** hand shared wholeheartedly: the main position building process is simple and easy to understand, and sincere.