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Do I need compensation for stock liquidation?

Does a stock liquidation require compensation?_Does a stock liquidation require compensation?

Does a stock liquidation require compensation? Perhaps many people think that compensation for a stock liquidation is very serious? The following is what the editor brings to you. Do you need compensation for stock liquidation? I hope it can help you to a certain extent.

Do I need to compensate for stock liquidation?

Liquidation refers to the situation where the customer’s equity in the investor’s margin account becomes negative under certain special conditions. If the liquidation results in If the shortfall is caused by investors, investors need to make up the shortfall, otherwise they will face legal pressure.

Most of the reasons for liquidation are related to improper fund management. In order to avoid this situation, investors should strictly control their positions and manage their funds reasonably. For example, every time they buy, only Buy 1/10 of the position of your capital, and at the same time, set stop loss and stop profit points, and avoid full position operations like those that may occur in stock trading.

At the same time, the leverage of investors buying futures is also high, and the greater the risk of liquidation. For example, if Zhang San’s futures leverage is 10 times, the price of the underlying asset will fluctuate after he makes a wrong move. 10%, his loss rate will reach 100%, that is, his position will be liquidated; Li Si's futures leverage is 5 times, and after he makes the wrong move, the price of the underlying asset will have to fluctuate by 20% before Li Si's loss rate will reach 100% , that is, the position is liquidated.

What does liquidation mean?

Liquidation in the stock market usually occurs in securities lending transactions and stock index futures. This is a margin transaction that occurs in transactions in the stock market. In places where stocks fell in 2015, many accounts were liquidated. The liquidation of these accounts also intensified the market's downward trend. The reason why these securities lending accounts have been liquidated is because when there are major changes in the market, the vast majority of the funds of these investors are still in transactions. Once the transaction and the market trend are opposite, there is an opportunity. Liquidation. Once a liquidation occurs, the shortfall needs to be replenished to the securities company, otherwise it will face legal liability. This also shows that securities lending transactions involve risks in the stock market, so this business has very high requirements for investors' funds and risk tolerance.

Most investors who liquidated their positions suffered losses caused by overweight positions. The underlying reason was that they became eager for quick success and quick profits driven by the market conditions, no longer feared the market, and no longer had the fear of stock market risks. exist. Many investors who have successfully traded in the market have had their positions liquidated due to their inability to trade, causing their profits in the stock market to disappear.

Does a stock loss require a cover-up?

Whether a stock loss requires a cover-up depends on the situation. Generally, one needs to analyze the reasons for the stock loss and whether one has the ability to bear the risk. If This stock fell due to the bad general environment, and has fallen to a low level. The stock has begun to rebound. Investors have a strong risk tolerance and are in a light position, so they can consider covering their positions. .

Just note that covering a position will increase the risk of the stock. That is to say, if the judgment is wrong and the stock is still at a loss, then the money invested in covering the position will also be lost, so everyone is covering the position. You should be cautious at this time. If the stock rises after covering the position, you can reduce the cost of holding the position and achieve a quick unwinding method, but this method is relatively risky.

When covering positions, investors should pay attention to stock position management, and then set profit-taking and stop-loss points to prevent themselves from being trapped. They must know their ability to bear risks. If they cannot bear the risk, Risk capacity, it is generally not recommended to cover positions.

Under what circumstances will a liquidation occur?

If a stock liquidation occurs, it often means huge losses for stock investors. This is something that all investors are unwilling to face. The right investment situation. Depending on the reasons for the liquidation, forced liquidation can be divided into the following three types:

1. The position was forcibly liquidated due to failure to deposit additional margin in accordance with regulations;

2. Transactions that violate trading rules and relevant regulations will also result in forced liquidation;

3. Changes in policies and trading rules will also cause forced liquidation.

Will the stock price rise before the private placement?

Whether the stock price will rise before the private placement is not certain. Before the stock placement, if there are funds to lower the fixed placement price, It may be difficult for the stock to rise, but if the market conditions are particularly good, it will be difficult to prevent the stock price from rising

The use of funds for the private placement of stocks will have a certain impact on the stock price. If the funds raised by the private placement can be given to listed companies If it brings benefits, then the probability of the private placement plan being approved will be greater. Although the private placement harms the interests of old shareholders to a certain extent, if the private placement can bring greater benefits, it will be beneficial to all shareholders