What does opening, closing, and holding positions in the currency circle mean? Popular explanation of opening, closing, and holding positions in the currency circle

In digital currency trading, opening a position refers to a trader buying or selling a digital currency, closing a position refers to selling or buying all the digital currencies that have been opened, and holding a position refers to The number of digital currencies that have been opened but not yet closed. Popularly understood, opening a position is like going to the store to buy something, closing a position is like selling the things you bought, and holding a position means you haven't taken out the things you bought.

Detailed explanation of opening, closing and holding positions in the currency circle

Opening a position

• refers to traders buying or selling a digital currency on a digital currency exchange.
• After opening a position, the trader has the corresponding amount of digital currency.
• There are two ways to open a position: buying to open a position and selling to open a position.

Closing

• refers to the trader selling or buying all the digital currencies that have been opened.
• After closing the position, the trader no longer holds the digital currency.

Positions

• refers to the amount of digital currency that a trader has opened but has not yet closed.
• Positions can be long (buy) or short (sell).
• Position size determines a trader’s potential profit or loss.

Popular explanation

• Opening a position: It’s like going to the store to buy something. Buying to open a position is equivalent to buying. For digital currency, selling to open a position is equivalent to selling digital currency.
• Close a position: It’s like selling something you bought. Buying to close a position is equivalent to selling digital currency, and selling to close a position is equivalent to buying digital currency.
• Position: Just like you put something in your bag but haven’t taken it out, holding is the digital currency that you haven’t sold yet.

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