Position is one of the commonly used stock terms. Position is a financial term that refers to the amount of specific commodities, securities, currencies, etc. held or owned by an individual or entity.
Chinese translates it as "position", which originated from the old society as a currency of "Yuan Datou" every ten piles up to an inch; a position is a market agreement that promises the initial position of a contract for purchase and sale, and the person who buys the contract is A long position is in the position of expectation; the person who sells a contract is a short position and is in the position of expectation. The above content is the meaning and explanation of the stock term position.
What does position mean in finance
"What does a position mean in finance" is the relevant knowledge that investors need to know, but it actually means balance; for example: foreign exchange position--refers to the balance status of various foreign currency accounts held by foreign exchange banks. That is, the surplus and deficiencies of the foreign exchange bank's foreign exchange trading.
When the foreign exchange bank buys more foreign exchange than it sells, the foreign exchange position appears long (LongPosition), also known as overbought; when the foreign exchange bank buys and sells the foreign exchange, the foreign exchange position is balanced. It is called squeeze or hold (S); when the foreign exchange bank bought by the foreign exchange bank is less than the foreign exchange it sold, the foreign exchange position appears short or short (ShortPosition), also known as oversold (Oversold); held by the foreign exchange bank The net balance calculated by adding up various foreign currencies for various periods is called the overall position (OverallPosition); the position is used as a market agreement.
The buyer of a futures contract is in a long (short) position, and the seller of a futures contract is in a short (short) position; when opening a position in a futures transaction, the position held after buying the futures contract is called a long position, referred to as a long position; selling; The position held after the futures contract is called short position, short for short, the above is the specific content and answer of "what does a position mean in finance".
Popular explanation of positions
The position has a certain relationship with the stock market. The so-called position refers to the account balance; just foreign exchange, because it is responsible for the settlement and sale of foreign exchange, every bank that operates foreign exchange must have a sufficient stock of settlement currency. Ensure the smooth progress of foreign exchange settlement and sale.
If the Bank of China has US$10 billion and GBP 5 billion...; this value is calculated by the Bank of China in its business process to meet the basic data of daily operations. This amount must be maintained every day, but there are many companies and individuals on that day Foreign currency will be sold out of the Bank of China, and many companies and individuals will buy foreign exchange. Over the course of a day, there will be phenomena such as the US dollar exceeding (or less than) 10 billion, and the part that exceeds (or less than) 10 billion is called a position. Exceeding is long, but not short; Bank of China will cover it before the end, and it will open at 10 billion the next day.
This is called "scaling a position", and there are ways to make up: one is the exchange between various currencies of the bank (the same bank will have short currency positions and some currency long positions); second, foreign exchange Exchange between operating banks (for the same currency, different foreign exchange operating banks have short positions and some long positions); if the imbalance is compensated, the long foreign exchange can also be directly sold to the central bank to form national foreign exchange reserves; this is also the case in the local currency For example, a branch (or branch office) of a bank, based on accumulated experience, generally maintains 50000 yuan in cash to meet daily transaction needs. Before opening, 500000 yuan to the branch. After operating on the same day, it may reach 60,000 yuan, that is, cash long 10,000 yuan (cash position). It is necessary to adjust the balance between branches (flattening the position), or loan the balance out, and the next day will be shipped. The money transported by the banknote car is still 50,000 yuan, and the above is the specific content and answer of the "Position Interpretation".
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