Closing a position means that a futures trader buys or sells a futures contract with the same type, quantity and delivery month as the futures contract he holds, but in the opposite trading direction, thereby closing the futures transaction. Buying if it was originally sold.
Gold liquidation refers to the trading behavior of traders to close their positions, and the way of settlement is mainly to hedge against the direction of the positions.
Liquidation method of fried gold
1.Sub-top liquidation
When it is observed that the price is unable to make a new high and there is a sign of a fall, it is to close the position. This method of closing positions is an improved and upgraded version of the method of stop-loss closing, which can maximize the due profit.
- Blocking and closing positions
When the price reaches or is about to reach the next branch resistance level, close the position without waiting for the shock result. But if it is unilateral, most of the support is ineffective, and it will inevitably miss out on a lot of profits. Therefore, this method is suitable for volatile market or to catch a callback and grab a rebound.
- Stop loss and close the position
When there is a certain profit, the cost of stop loss protection is raised, and then with the development of the market, the stop loss is raised according to the technical graphics until the stop loss is destroyed. This method applies to unilateral market.
- Target closing
Treat each order as a bet with a high probability of winning. When placing an order, set a stop loss and a take profit at the same time. The take profit target is at least three times the stop loss, and the open position is adjusted according to the fixed loss amount. When a certain profit is held, the cost of stop loss protection is raised.
In the process of investing in gold futures , some investors wonder why gold futures cannot be closed? Why can’t the investment in gold futures be closed? If a natural person customer really needs to buy spot gold , it can be achieved through channels and methods such as bank or spot market transactions.
The regulations that the positions are not allowed to enter the delivery month shall be explained in the risk control and management measures.
The main function of the futures market is price discovery and hedging, and physical delivery is not the main purpose of futures trading. At the same time, the futures delivery rules have a series of requirements and regulations for different types of investors. This is also the difference between the futures market and the spot market. Therefore, in order to strengthen risk control, the Shanghai Futures Exchange stipulates that natural person customers are not allowed to carry out physical delivery of gold, and also stipulates that natural person customers’ positions should be adjusted to 0 lots in the delivery month.
If the natural person customer’s position is not adjusted to 0 lots in the delivery month, the exchange will execute the forced liquidation from the first trading day of the delivery month. Profits arising from forced liquidation shall be implemented in accordance with relevant national regulations (that is, not owned by natural person customers), and losses arising from forced liquidation shall be borne by the responsible person.