Because the guarantee ratio of the two financing accounts will be reduced to 150%, you will be warned. If it is reduced to 120%, you will be compensated with collateral. If the collateral cannot be replenished in time, it will be liquidated.
When it falls to 120%, it needs to be supplemented by 50,000 yuan to reach 300,000 yuan, and then the collateral will not be closed. If you don't make up, you will close your position if the loss reaches 300,000.
Forced liquidation refers to the behavior of the company to dispose of the investor's collateral according to the margin financing and securities lending contract and repay all or part of the company's liabilities when the investor fails to pay the collateral on time or fails to pay the debts due.
First of all, we must understand what is the liquidation line. The liquidation line means that when the guarantee ratio is lower than 130%, we will face compulsory liquidation. Maintenance guarantee ratio = total assets/total liabilities * 100%.
1, liquidation is a term derived from commodity futures trading, which refers to the trading behavior that one party cancels the futures contract bought or sold before in futures trading. Closing a position is a general term for selling stocks bought by bulls or buying back stocks sold by bears in stock trading.
2. Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. A short position means that the loss is greater than the margin in your account. After the company is forced to draw a tie, the remaining funds are the total funds MINUS your losses, and generally there will be a part left.
When the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading. If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse.
The whole process of futures trading can be summarized as opening positions, holding positions, closing positions or physical delivery. Opening a position, also known as opening a position, refers to the new purchase or sale of a certain number of futures contracts by traders. Buying and selling a futures contract in the futures market is equivalent to signing a forward delivery contract.
If traders keep futures contracts until the end of the last trading day, they must settle futures transactions by physical delivery or cash settlement. However, only a few people make physical delivery, and most speculators and hedgers generally choose to sell their futures contracts or buy back their futures contracts before the end of the last trading day.
That is to say, the original futures contract is written off by a futures transaction with the same amount and opposite direction, thus ending the futures transaction and relieving the obligation of physical delivery at maturity. This behavior of buying back a sold contract or selling a bought contract is called liquidation.
Closing a position in futures trading is equivalent to selling in stock trading. Because futures trading has a two-way trading mechanism, there are two kinds of closing positions: buying and closing positions (corresponding to selling and opening positions) and selling and closing positions (corresponding to buying and opening positions).