What is the relationship between fund short selling and fund short selling? Will fund shorting lead to short positions? Many people are curious about this, so Bian Xiao specially brought you how to look at the short position of the fund. I hope you like it.
How to treat the short position of funds
Short selling funds is an investment strategy. By short selling investment targets (such as stocks, bonds, etc.) ), hoping to make a profit when the price falls. On the contrary, funds do more to buy investment targets, hoping to get benefits when prices rise.
There is a certain relationship between fund short selling and fund short selling, but it is not inevitable. The short position of a fund usually refers to the situation that the fund cannot maintain its normal operation due to serious losses. If the fund adopts a large number of short-selling strategies, and the actual market situation is contrary to its expectations, it may lead to a sharp drop in the net value of the fund, thus increasing the risk of short positions of the fund.
However, shorting the fund itself does not mean that the fund will definitely break out. Whether it is good or bad depends on the specific situation. As a market trading strategy, fund shorting can provide market liquidity, enhance market efficiency and provide investors with opportunities to hedge risks and make profits. However, excessive shorting of funds may trigger market volatility and investor panic, which will have a negative impact on market stability.
In short, fund shorting is a legitimate investment activity, and its quality depends on the specific situation and market environment. Investors should carefully choose their own investment methods according to their own risk tolerance and investment objectives. At the same time, regulators should closely monitor the market operation and take necessary measures to maintain market stability and fairness.
What do you mean by explosion?
Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. When the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading.
Under normal circumstances, under the daily liquidation system and the compulsory liquidation system, there will be no explosion of positions. However, in some special circumstances, such as when there is a gap change in the market, accounts with more reverse positions are likely to explode.
What is an empty position and what is a liquidation?
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2. It is an important operation to close the position in time according to the market trend and realize the expected profit and stop loss of the price difference. After the short position reaches a certain level, the securities company will force the liquidation. A short position means that the loss is greater than the margin in your account. Under the daily debt-free settlement system and the compulsory liquidation system, one situation refers to the liquidation of futures customers.
3. Forced liquidation is also called forced liquidation. At present, there are basically no explosions in China, which is what we often call explosions. The compulsory liquidation system is the same as the position restriction system. There are two kinds of forced liquidation of futures.
4. The liquidation in futures refers to the trading behavior that buyers and sellers are forced to liquidate their futures contracts in order to cancel the futures contracts they bought or sold before. Short positions are also called forced liquidation. A short position refers to a short position in a stock or futures. The so-called empty warehouse is under some special conditions.
5. There is another explanation for short positions. Closing a position is to sell the futures and contracts that you originally bought. The so-called bear is a piece of shit, and bear and bear refer to a phenomenon.
6. Short positions involve margin trading. Short position means that the direction of your net position is opposite to the direction of market change. Your position is short, x0d, x0d, and you have not closed your position within the specified time limit.
7. According to the different subjects of forced liquidation, under the daily liquidation system and forced liquidation system, there are two situations: x0d,, x0d and short position, that is, the margin income is negative.
8. Forced liquidation is also called forced liquidation. Closing a position is an operation method, also known as being cut, cut and exploded. There is no problem of money fund explosion, and exchanges can generally set up automatic liquidation.
When will the fund explode?
There will be short positions, often because the fund losses are too serious. Generally speaking, it may be because the risk control of the fund is too poor, so the fund fell badly; It is also possible that the fund manager added leverage, but after adding leverage, stocks or bonds developed in the opposite direction, thus triggering short positions.
Generally speaking, Public Offering of Fund in China will not explode. However, if the asset allocation ratio exceeds 100%, that is, the fund manager leverages through bond pledge repurchase, then when the price of pledged bonds falls and some funds pledged by the fund manager suffer losses, it may cause great losses and lead to short positions.
Public Offering of Fund has strict institutional leverage restrictions on investment: the leverage ratio of open-end funds should not exceed 140%. For fixed funds, the closed period shall not exceed 200%, and the open period shall not exceed 140%.
Compared with Public Offering of Fund, private equity funds in China are more likely to break out, because the investment risk of private equity funds is higher. Especially for some equity private equity funds, when the companies they invest in are not listed, it means that private equity funds are in a state of loss, which is easy to cause short positions.
Factors affecting short positions of funds
1. Market risk
Market risk is one of the most important factors leading to short positions in funds. In the case of bad market conditions, many investors will choose to redeem their fund shares, which leads to the need for fund managers to sell their own assets to meet the redemption demand. However, in the case of bad market conditions, these assets may not be realized quickly, resulting in a further decline in the fund's net value.
2. Leverage risk
Leveraged trading refers to investors trading by borrowing funds. In leveraged trading, even if the market fluctuation is small, it may cause great losses. Therefore, investors need to be very cautious when conducting leveraged transactions.
Are bond funds risky?
Bond funds are risky, just saying that the risk of bond funds is relatively low. Basically, all funds are risky, just saying that the degree of risk is different, some are high, some are low, and some wealth management products are very low, which leads us to mistakenly think that these wealth management products are risk-free.
We should be clear that low risk and no risk are two different concepts. For example, most people think that bank time deposits are risk-free. In fact, bank deposits are risky. If the deposit exceeds 500,000, when the bank goes bankrupt, the excess will not be compensated. It just shows that our country has strict management of financial institutions, so basically there will be no bank failures, but there are still examples. Bank deposits not only face the risk of bank bankruptcy, but also may be that the rate of inflation exceeds the interest of your deposits, which leads to the depreciation of your bank deposits. Therefore, investment and financial management in the basic listed market are risky, just saying that we can't see some potential risks, and so are bond funds.
The main investment target of bond funds is bonds, accounting for more than 80% in bond funds. In China, bond funds mainly invest in government bonds, financial bonds and corporate bonds.
Because the risk of the investment target of bond funds is relatively small, the risk of bond funds is relatively small as a whole. For example, stock funds invest in stocks, but the volatility of stocks is relatively large, so the risk of stock funds is relatively large. The risk of a fund is mainly determined by the target of its investment, but there are also some other influencing factors, such as the management level of the fund manager and the length of the fund's establishment date.