Beginner’s Guide to Positions: Understanding Market Signals Through Price and Trends

Introduction: The relationship between Holdings, Opening positions, and Closing positions

The three stages of investment trading are:

• Opening position: The act of establishing a Holdings.
• Holdings: The status of a trade in progress;
• Close Position: Settle the trade, locking in profits and losses.

For example, when you buy 1 lot of gold futures, you are “holding” that position; when you sell that contract, the trade is closed out. Holdings represent your current risk exposure in the market.

The difference between holdings and personal holdings

These two concepts are often confused:

• Personal Holdings: Refers to the positions in your account that have not yet been sold.
• Market Open Interest: The total number of open contracts held by all investors, which is a key indicator of market activity.

When the market’s holdings continue to rise, it indicates that more new funds are flowing into the market; a decline means that funds are leaving or taking profits.

The linkage between holdings changes and price trends

There is a close relationship between price, trading volume, and Holdings.

• When the price rises and the Holdings increase → funds continue to flow in, the trend may continue;
• When the price rises but the holdings decrease → The main force is reducing positions, and the upward momentum may slow down.
• When the price falls and the Holdings increase → bears are active, and further declines may occur;
• When the price drops but the Holdings decrease → Long positions may stop loss and exit, market sentiment may turn neutral.

Therefore, observing the changes in Holdings often allows for the early detection of signs of trend reversal.

Observations on Holdings in Market Hotspots of 2025

Entering 2025, the holdings data of various assets reflects new trends in the market:

• Bitcoin contracts: Holdings have risen to a stage high, indicating a bullish market sentiment, but at the same time, risks are increasing.
• Crude Oil and Gold Futures: Affected by international factors, the holdings quickly decreased at one point, indicating that risk-averse funds temporarily withdrew.
• Tech Stock ETF: Leverage product Holdings have risen, short-term speculation is active.

These trends indicate that changes in Holdings often reflect emotional turning points earlier than prices.

How to determine trends using Holdings signals

• Watch for extremes: When the Holdings reach new highs or new lows, be wary of the market being overheated or too cold.
• Divergence observation: When the price rises but the Holdings decrease, it often indicates that the trend is nearing its end.
• Volume Analysis: When both trading volume and Holdings increase simultaneously, it indicates that the trend is confirmed by capital.
• Combined with the news aspect: Changes in holdings after the release of major news can verify whether the funds have truly entered the market.

Beginner Practical Strategies and Risk Control

• Do not blindly chase highs; be cautious when the holdings are at a high level.
• Set a stop-loss level before establishing a position to avoid being passively liquidated;
• Regularly review your Holdings portfolio and adjust flexibly.
• Maintain a stable mindset; holdings are not gambling, but a balance of risk and opportunity.

Summary

“What is Holdings” is not only basic knowledge but also a barometer of market sentiment. When you can understand the interaction between holdings and prices, you can spot market direction earlier than most investors.

The core of position management lies in rationality and discipline - knowing when to hold and when to short is the common secret of all successful investors.