For many novices who have never experienced an explosion, they may not have a clear concept of the explosion, so they don't know what the consequences of the explosion are. Therefore, Bian Xiao specially brought you explosives, so the money was gone. I hope I can help you.
If you explode, will all the money be gone?
The consequences of the warehouse explosion may include the following:
Loss of funds: when there is a short position, investors may lose the funds invested in the transaction. This means that their investment in this position will not be recovered.
Debt liability: If an investor borrows funds from an exchange or securities firm for leveraged trading before the short position occurs, it may need to repay the corresponding debt. Investors need to bear this debt responsibility according to relevant contracts and regulations.
Risk of further loss expansion: Short positions may make investors face greater losses because the stop loss mechanism cannot work. If the market continues to develop in an unfavorable direction, investors may continue to suffer losses.
Impact on reputation and mood: Short positions will have a negative impact on investors' confidence and mood. Experiencing short positions may lead to emotional stress and anxiety, and adversely affect their future trading and investment decisions.
Impact on portfolio: If investors spend the whole portfolio or most of their funds on a certain position, short positions may have a serious impact on the overall portfolio, resulting in overall capital loss.
It is important to realize that both trading and investment are risky, and whether you are short or long, there will be potential loss risks. In order to reduce the risk of short positions, investors should carry out adequate risk management, set up stop-loss orders reasonably, and choose the leverage ratio reasonably to ensure that they have enough funds and knowledge to engage in trading activities.
Will stock investment explode?
In the eyes of many people, stock investment should not explode. This view can be said to be right or wrong, depending on what investors are like.
First of all, there will be no short positions for those who invest in stocks entirely with their own funds. Although it is possible to lose money or even lose all the principal by investing in stocks with its own funds, it is still different from short positions because it is not caused by forced liquidation.
There is basically no possibility of forced liquidation when investing in stocks with its own funds. Even if the stock is delisted, you can keep it as long as you don't want to sell it.
What does lever explosion mean?
Leveraged short position refers to the loss of investors in spot crude oil investment transactions is greater than the margin in the energy account. Leveraged trading is the simultaneous amplification of income and risk, and the ratio of margin determines the size of leverage. The higher the leverage, the greater the potential explosion of the corresponding account. At the same time, leveraged short position also refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances.
Stock position control skills
1. Control positions according to the stock market. For example, when the market falls, try to choose short positions and wait and see. When the market goes up, you can keep more than half of your position and wait for the stock to go up.
2. When the market rises steadily, you can keep 70% positions. After all the positions in hand are profitable, add positions until Man Cang.
3. When the market is adjusted, you can keep 40% to 60% positions. If the stock is high, it will lighten the position, if it is low, it will buy it, and if it is profitable, it will be closed.
4. In addition, make up the position seriously. For example, only stocks with obvious operation and good medium-and long-term trends are suitable for covering positions. When the market is uncertain, it is not recommended to make up the position.
Several methods of stock position management
1. funnel warehouse management method
The initial entry funds are relatively small and the positions are relatively light. If the market runs in the opposite direction, the market prospect will gradually become jiacang, and then the cost will be diluted and the proportion of jiacang will increase. In this method, the position control is very similar to a funnel, which is big and small, so it can be called a funnel-shaped position management method.
2. Rectangular position management method
The ratio between the initial amount of funds entering the market and the total amount of funds is fixed. If the market develops in the opposite direction and then gradually becomes jiacang, jiacang will follow this fixed ratio, and its shape is like a rectangle, which can be called rectangular position management method.
3. Pyramid position management method
The initial amount of funds entering the market is relatively large. If the market runs in the opposite direction, no more positions will be added. If the direction is the same, the proportion of adding positions will become smaller and smaller. Position control is a form of big bottom and small top, like a pyramid, so it is called pyramid position management method.
How long does it take for investors to explode under the leverage of 100 times?
Under the leverage of 100 times, when the subject matter purchased by investors rises by 1%, the yield of long investors reaches 100%, and the loss of short investors is 100%, that is, short positions appear; When the subject matter purchased by investors falls by 1%, short investors will gain 100% under the leverage of100 times, while long investors will lose 100%, that is, short positions. Therefore, when the leverage of futures is 100 times, when it falls 1%, (up 1%) makes long positions.
Therefore, in the process of futures trading, investors should make rational use of their leverage, operate lightly, try to ensure that they have enough margin, and set up a stop-loss and profit-taking position after making orders.