No matter what reason investors make up their positions, they should control their positions reasonably to cope with the later risks. For friends, the meaning of stock lock-up may not be clear. So, what does it mean to make up the position? Let's take a brief look at the relevant information first.

What do you mean by covering positions?

Covering positions means that investors buy similar securities on the basis of holding a certain amount. The word covering positions is not only used for stocks, but also for spot, futures, funds and other investment products. Covering positions in stocks is to buy stocks at a lower price, so that the unit cost price drops, with a view to rebounding after covering positions and making up for the losses of high-priced stocks with the profits earned from covering positions.

After investors buy stocks, individual stocks are affected by some favorable factors, which leads to the continuous rise of individual stocks. In order to increase income, investors make up their positions. Of course, this covering operation not only increases the number of shares held, but also increases the holding cost of investors. Once the market deteriorates, investors may be trapped. Reminder: The stock market is risky, so be cautious when entering the market!

It probably means something like this

T-covering refers to the behavior that investors buy stocks at a lower price on the same day and then sell a certain number of stocks at a relatively higher price to earn the difference.

When investors are caught in the quilt, they may make up their positions and do T-operations. Investors make up their positions at a low price on the same day, and then sell a certain number of stocks when the stock price is higher than the position to earn the difference, reduce the cost price of the stocks and make up for the losses.

For example, Xiao Li bought 1000 shares of a stock at a price of1000 yuan. The stock price fell after buying. When the stock price fell to 8 yuan, investors made up their positions and bought 500 shares of the stock. The share price rebounded that day and rose to 8.5 yuan. At this time, Xiao Li sold another 500 shares.

Xiao Li made up for T operation, and made a profit of 500×0.5=250 yuan, which made up for some losses to some extent. After quilt cover, investors can make up their positions in addition to T operation, or they can make up their positions separately. Through the decline of stocks, buy stocks in batches, increase the number of shares, reduce their cost price, and wait for the stock price to rise.

What is its function?

When the stock we originally bought from the high price falls too deeply, it is difficult to return to the original price. By covering the position, the stock price may leave at the closing price instead of rising to the original high price. So how to calculate the cost price after covering the position? The calculation formula is: (total cost of first purchase+total cost of covering positions)/total stock held = cost price after covering positions.

The function of covering positions is to buy stocks at a lower price, so that the unit cost price drops, with a view to rebounding after covering positions and making up for the losses of high-priced stocks with the profits earned from covering positions.