Technical terms in the stock market may take a lot of time to remember. Before that, we may make some mistakes by confusing the meaning. Therefore, Bian Xiao specially sorted out the meaning of foreign exchange liquidation, hoping to help everyone.
What does foreign exchange liquidation mean?
The whole process of futures trading can be summarized as opening positions, holding positions, closing positions or physical delivery. Speculators and hedgers usually buy futures contracts and sell them before the end of the last trading day, or buy back the sold futures contracts, that is, by equal amount. Reverse the original futures contract through futures trading, thus ending futures trading 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.
In stocks, the first time you buy a stock is called opening a position; Continue to buy in the rising process and call Masukura; Buying in the process of falling is called covering positions; Holding stocks is called holding positions; Selling stocks is called liquidation; Selling at a loss is called lightening the position.
In foreign exchange, you buy (sell) a certain currency, which is called opening a position, and then selling (buying) is called closing a position.
What do you mean by clearing foreign exchange transactions?
It is common to close positions in foreign exchange transactions, which is also the reason why there is no additional available margin during trading operations. Another is that the trading platform is an informal platform, and the system is powerful for you.
Foreign exchange belongs to margin trading, and forced liquidation is mainly because when the floating loss of your position sheet reaches a certain proportion, that is, when it reaches the standard of forced liquidation, it will be forced to liquidate. Generally speaking, each futures company or futures platform will have different standards for Qiangping. For example, some platforms will be forced to close their positions when the margin ratio reaches 10%, some platforms will be forced to close their positions when the margin ratio reaches 50%, and some platforms will be forced to close their positions when the margin ratio reaches 100%.
To open a foreign exchange account, domestic investors need to find an international foreign exchange dealer to make online investment. Be sure to check the international financial supervision license of this platform before opening an account.
The conditions for opening a foreign exchange account are not high:
1, there is no capital threshold, and all funds can be traded in gold;
2. 18 years old and under 65 years old can open an account;
3. Prepare personal information such as ID card and email address to open an account.
What does foreign exchange liquidation mean?
Closing positions refers to selling positions held by bulls or buying back positions sold by shorts in foreign exchange transactions. Generally speaking, the whole process of foreign exchange trading can be summarized into three aspects: opening positions, holding positions and closing positions. There are two main operating procedures for closing positions. First, in the bull market, buy and open positions, then sell and close positions; Second, in a bear market, sell and open positions, and then buy and close positions. For example, an investor is bullish on the exchange rate of EUR/USD, and bought two mini-hands /30K EUR/USD on June 5438+1October 65438+1October 0, and the transaction price was 1. 1930. At this point, investors hold two mini-hand/dollar long positions. On June 5th, 65438+ 10/kloc-0, investors saw the exchange rate of EUR/USD rising, so they sold EUR/USD at 1.2 100 to close their positions. After the transaction, the actual position of the investor is only 1 mini euro/USD.