What does full position mean? Understand industry terminology

Issuing time:2020-01-06 00:00

Positions mainly refer to the proportion of funds used in the securities capital account, which can be divided into light positions, half positions, heavy positions and full positions according to different degrees. The operation of full positions usually means that all funds have been bought into stocks, and the remaining funds are not enough to buy another 100 current stocks. If the type is selected correctly, there will always be a good return even if the market falls after the full position. If the variety is not selected properly, even if the market continues to strengthen, the index may fall sharply and even fall into an awkward situation of loss.

In a broad sense, "full position operation" refers to long-term investment, that is, holding stocks after purchasing stocks. However, due to the characteristics of the a-share market, simply using this method to "full position" is often ineffective in full positions. In other words, all your funds are bought into stocks, which is the meaning of a full position. What is a stock position? A stock position is the ratio of actual investment funds that an investor must invest in. For example, you have prepared 100,000 yuan to buy stocks, but now you have only 50,000 yuan to buy stocks, and the remaining 50,000 yuan has not yet been bought. Then your current position is (5/10 * 100%), but if you have all 100,000 yuan to buy stocks, then your position is full. If you sell all stocks, you are short positions, so all investments need to be cautious.

When it comes to full positions, you must talk about its other friends. Among the stock positions, there are half positions, short positions, open positions, increase positions, decrease positions, clear positions, make up positions ... and so on. They are all indispensable words in the stock market. Together with full positions, they fluctuate as the stock market fluctuates. A half position is when you buy half of the stock with speculative money. The remaining half has been booked. A short position means that you have not bought stocks for the time being. A long position means that you have always held stocks in your favor. A long position means that you continue to buy stocks after you buy them. A short position means that you sell some of your stock.

Finally, the above is my answer to the meaning of full positions. Entering the market is risky and you should invest cautiously.

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