Opening a position, a futures term, also known as opening a position, is when a trader buys or sells a new quantity of a futures contract. The whole process of futures trading can be summarised as opening, holding or closing a position. Buying or selling a futures contract in the futures market is equivalent to signing a forward contract. If a trader keeps this futures contract until the last trading day, he must close the futures transaction by taking physical delivery or liquidating it with cash. However, physical trades are in the minority and most speculators and hedgers generally find the opportunity to sell the futures contracts they bought or buy back the futures contracts they sold before the end of the last trading day. This means closing out a futures trade by replenishing the original futures contract with a futures trade in the same quantity and in the opposite direction. The act of buying back a contract that has been sold, or selling a contract that has been bought, is called closing a position. A contract that has not been closed after a position has been opened is called a position held. After a position has been opened, the trader has two options for closing the futures contract: either to look for an opportunity to close the position, or to hold the position until the last trading day and make a physical trade.
1、Shock position building
Oscillating trend in the market is more common, the trend is almost always unaffected by the general market. The main force involved in such stocks by repeatedly suppressing the share price, wearing down the patience of investors to obtain chips. Some listed companies are high-quality shares, excellent performance, in the case of difficult to suppress the share price, the main force can only choose such a way to allow retail investors to hand over chips, by the main force to build a long position.
2, homeopathic suppression to build a position
The purpose of why the main force to suppress the share price is well understood, is to collect more low-priced chips from investors. The main force will generally buy a part of the stock in advance, and then sell the chips in hand to suppress the stock price, the stock price will show a downward, broken trend, thus causing investors to panic selling when the main force will be homeopathic buying low-priced chips. Containing a rapid fall in the share price, the share price closes with a lot of negative news released.
3、Pull up to build a position
Pull high to build a position is a method for the main force to obtain the shortest time chips and the highest cost. Generally is the stock fundamentals suddenly become good, the main force is eager to intervene, so by pulling up the stock price to tempt investors to sell shares to get chips. In the stock price was pulled up at the same time, the volume and turnover rate increased significantly this is a means of the main force to absorb funds.