You're Correct!

As you make your back swing, your upper body rotates and your wrists set as you swing the golf club into the correct position.

When you are half way back on your back swing, your shoulders are 45 degrees rotated to the right (for right handed golfers), with your left arm extended and hands at chest high.

Your wrists will have hinged so that you have created a 90 degree angle, or an L shape, between the shaft of the golf club and your left arm. In this position, the shaft of the golf club will be angled so that following it downwards, an extension of the shaft angle would hit the target line. The club face will be slightly upwards to the sky and the toe of the club face will be the highest part of the club and pointing upwards.

Achieving this position means that the club face has rotated correctly and the club head is on plane, which will allow you to hit consistent, accurate and long golf shots.

If the toe of the golf club is level with the shaft and pointing away from the target as you swing half way back on your back swing, then you have not cocked and set your wrists correctly. You will now have to do this at the end of your back swing and this will promote an early release on your down swing and the associated issues of doing this.

If the toe of the club face is pointing up, but the face has rotated away from the target as you swing half way back on your back swing, then you have closed the club face. Swinging back at the ball from this position will see the club face aiming left of the target as you strike the golf ball.

The position of the toe of the club face is important as you swing back as it indicates the club head and face position relative to its start position. Presenting the club face back to the golf ball correctly is much easier to do if the face stays relative to its starting position.