Margin settlement

The most feared phenomenon of shareholders.

What is a short position? Forced liquidation is also called forced liquidation, which is also called being cut, cut and exploded. It 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. Commonly used in spot gold and futures trading.

For example, a hand BYD 3w, you spent 6w to buy two hands, which is an ordinary transaction. But the stock market can be leveraged. You only need to pay 10%, which is 3,000 yuan, and I will pay the remaining 90% for you. This is ten times the lever. I lent you 27,000 yuan, not for free. You need to pay me back later. If BYD falls to 2v7, it will face a problem, and the remaining money is only enough to pay me back.

Continue the example: although it only fell by 10%, your own 3000 is quite wiped out under the leverage of 10 times. At this time, if you want to wait for the price to rise, it won't do. This is the money I lent you, so I have the right to sell the stock and get 2w7 directly. You have nothing at this time, so don't add leverage! Don't borrow money and leverage!