What is the meaning of "foreign exchange position" and "foreign exchange position"?

Investors who have been in contact with foreign exchange trading should know that one of the biggest characteristics of the foreign exchange market is the ability to conduct two-way transactions. Therefore, many people are very interested in foreign exchange investment. However, there are many professional terms that we are not familiar with. For example, the "warehouse" that Xiaobian is going to introduce to you today is not clear to many people. Let's take a look at what the "position" is meaning.


What's a warehouse
Short selling is the symmetry of short sale. Investors predict that the stock price will rise, but their own funds are limited, so they can't buy a large number of stocks. Therefore, they first pay part of the margin, and then raise funds from the bank through the broker to buy stocks. When the stock price rises to a certain price, they sell them to obtain the balance income.

In short buying transactions, if the investor believes that the price of a certain security will rise and wants to buy more of the securities, but the funds on hand are insufficient, they can borrow funds from the securities dealers by paying the margin, and then sell the securities when the price rises to a certain degree to obtain the price difference. Because the investors buy securities with borrowed funds and put them as collateral in the hands of brokers, investors have neither enough funds nor securities in their hands, so it is called short trading.

Steps of short selling
1. An investor and a securities firm shall enter into an account opening contract and open a credit trading account.
2. The investor shall pay the required margin to the securities firm in accordance with the legal proportion, and the securities firm shall purchase the securities as designated by the customer, and advance the remaining funds required for the purchase of the securities for the customer to complete the delivery. During the financing period, the securities firm has the control over the securities purchased by the client. When the price of the securities purchased by financing falls, the customer should pay the maintenance margin within the specified time, otherwise he can close the position on behalf of the client.
3. During the financing period, the client may entrust the securities firm to sell the securities purchased by financing at any time, and repay the principal and interest of financing with the price obtained, or repay the financing with cash at any time. If it cannot be returned at maturity, the securities firm has the right to close the position compulsorily.

As for the meaning of "Cang", I would like to introduce it to you today. If you have other questions or want to know more about investment, you can consult our online customer service at any time.

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