What does crude oil liquidation mean? What does crude oil liquidation mean? What are the benefits of liquidating crude oil for us? Or what is the role of crude oil liquidation? The following is the crude oil settlement brought to you by Bian Xiao. I hope you like it.
What do you mean by closing crude oil?
The liquidation of crude oil means that no matter in which direction investors opened crude oil before, they now get cash back through liquidation. Closing a position is generally the opposite of opening a position. The ultimate goal of closing a position is to get back the cash.
Closing position refers to the behavior of futures investors to buy or sell stock index futures contracts with the same variety, quantity and delivery month, but in the opposite direction, in order to close the stock index futures trading. It can also be understood as: liquidation refers to the trading behavior of traders, and the way of liquidation is to hedge the position direction.
Do you really understand liquidation?
Closing a position is usually used for investment stop loss or take profit, that is, investors choose to sell all the shares they hold, which is called closing a position. There is also a situation called forced liquidation.
For example, Xiaoer sells strawberries, and now the purchase price of strawberries is 10 yuan/kg. I only have 100 yuan in my hand, and I can only buy 10 kg, but the orchard requires at least 100 kg to enjoy the purchase price of 10 yuan. So Xiao borrowed 900 yuan from an organization and collected 1, 000 yuan to buy goods. At this time, if the strawberries in the market rose to 15 yuan/kg, Xiao directly earned 500 yuan, (15x100-1000 = 500), which is equal to five times the profit of the principal.
However, if the price of strawberries drops to 9 yuan/Jin, only strawberries from 900 yuan will be left, but 900 yuan borrowed them from an institution. Once the total price of strawberries is less than 65,438+000 yuan, the small part has been lost. At this time, if Xiao does not continue to increase investment, an institution will forcibly withdraw all strawberries, which is called forced liquidation, also called short position.
What do you mean by opening, closing and closing positions in stock index futures trading?
Going up in trading terms means opening multiple orders, filling in orders, opening positions and buying. When this order is to be sold, close the position and sell it. To make a decline is to open an empty order and make up the order to open a position and sell it. When this order is to be sold, close the position and buy it. Settle today, settle today. If you close your position overnight, just close it directly. Buying and opening positions: refers to buying multiple orders when placing an order, that is, bullish and bullish index. Selling and opening position: refers to buying an empty order when placing an order, that is, bearish or bearish index. Buying and closing: refers to selling more than one order when placing an order. Selling and closing: refers to selling the bought empty order when placing an order. Buy flat today: refers to selling multiple orders bought on the same day when placing an order. Selling flat today: refers to selling empty orders bought on the same day when placing an order.
What does liquidation mean? What does it mean to take profit and close the position?
The closing price is the price at the time of sale. Stop loss is to set the maximum loss, and take profit is to set the maximum profit. Floating profit and loss is the difference between the position value of the contract held by the trader at the closing price of the transaction and the original position value.
What does compulsory liquidation of stocks mean?
Forced liquidation is sold by brokers.
Because investors carry out margin trading, brokers will lend money or securities to investors only after the investors transfer the collateral to their accounts. Suppose the investor's collateral suddenly plummets, then the collateral funds are not enough and the investor needs to transfer the collateral again. If it is not transferred, the brokerage firm will forcibly close the investor's margin financing and securities lending account.
Therefore, there are early warning lines and flat warehouse lines for margin financing and securities lending.
Early warning line means that maintaining the guarantee ratio below 140% will trigger an early warning, so investors will be prompted to add collateral;
The liquidation line is to maintain the guarantee ratio below 130%. If the broker prompts you, you will be forced to close your position without increasing the collateral. Prompted by the brokerage firm, the proportion of additional maintenance margin for investors shall not be less than 140%.
If there is no additional margin after the brokerage prompt, all the expenses incurred shall be borne by the investor. However, if the broker fails to be prompted by the system to close the position, the broker also needs to bear the losses of some customers.