What is lever explosion? Perhaps many people who don't know much about the lever itself are in a state of doubt. What is the relationship between leverage and short positions? The following is what Bian Xiao brought you about the lever explosion, hoping to help you to some extent.
What should I do if I make a lever explosion?
In the case of lever explosion, the following are some suggestions and related information:
Calm down first: in the face of leverage explosion, we must first remain calm and clear-headed, and don't fall into panic or emotional behavior.
Learn to sum up lessons: review the reasons for short positions and analyze whether there are problems in trading strategies and whether risk management is adequate. Learn from it and improve investment decisions and strategies.
Seek professional help: If the situation is complicated, it is recommended to seek the help of professional institutions, investment consultants or brokers. They can provide personalized suggestions and solutions to help you cope with the difficulties caused by job explosion.
Adjust fund management: re-evaluate your risk tolerance and fund management strategy, ensure the rational allocation of funds, control risks and avoid similar explosions in the future.
Continuous learning and upgrading: Investment is a process of continuous learning and upgrading. Learn more about leveraged trading, risk management and market analysis to improve your trading skills and decision-making ability.
Leveraged short position refers to the situation that investors are forced to close their positions due to price changes or improper risk control, resulting in capital losses exceeding the account balance. Leveraged trading can amplify the return on investment, but it also increases the potential risks and losses.
Note: Leveraged trading is risky. Please choose carefully on the premise of knowing the relevant knowledge and risks to ensure that you have enough risk tolerance.
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.
How to control stock positions
Location and buying opportunities
China stock market implements the trading system of T+ 1, and the stocks bought cannot be sold on the same day, but can be bought on the same day after being sold. This means that the stocks bought in the morning have to bear greater risks. Sometimes, the trend in the morning is all the way up, and in the afternoon, it is very likely that the situation will suddenly change and turn around. We should take this into full consideration when controlling our position. There is a good buying opportunity immediately in the morning, and additional lightening is needed; When there is a buying opportunity in the afternoon, you can add positions appropriately. When there is a selling opportunity in the morning, we must resolutely lighten our positions, because if we really value this stock, there is still a chance to buy it at a low level.
As can be seen from the above analysis, position control is a dynamic and continuous process, and positions need to be adjusted at any time according to the trend of the market and individual stocks. This is definitely tiring, but it can effectively control risks and achieve stable returns.
Position and trend
The trend of stocks in the day can be roughly divided into three types: sideways, up and down. When the stock is sideways, it means that it may go up and down. The average position can be roughly 50%. If the stock rises, the average position can be appropriately increased. The more obvious the rise, the higher the average position. When the stock falls, the average position should be appropriately lowered. The deeper the decline, the lower the position.
Positions and stocks
Every stock has different characteristics. It is also rising, some rising fast, and some rising slowly; Some fluctuate greatly, while others fluctuate slightly. For volatile and active stocks, on the K-line chart, there are many price overlaps in two adjacent days. Whether it is rising or falling, there are opportunities in the short term, and the position fluctuation can be larger. On the other hand, if the stock is inactive, the fluctuation is small, and there is no chance to do short-term, then you can lock the position or gradually increase the position when it rises, and you should resolutely short it when it falls.
Will Man Cang stock explode?
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. In the A-share market, investors will not explode their positions in ordinary transactions. Even if the stock price falls and investors suffer huge losses, as long as investors do not take the initiative to sell stocks, they will continue to hold stocks. Of course, if investors buy stocks and their companies go bankrupt, investors will apply for compensation, and listed companies will make corresponding compensation according to the stocks they hold.
Investors carry out margin trading, that is, borrow money from securities companies and buy a stock. Considering the risk, the securities company will agree with investors on the liquidation line, that is, when the stock price falls and the loss reaches the liquidation line, the securities company will remind investors to add margin. If investors add margin to maintain losses, there will be no short positions. If investors do not add margin, there will be short positions, that is, securities companies are forced to close their positions.
What do you mean by short position?
Generally speaking, short positions refer to short positions made by bearish investors, but the market outlook suddenly rises, resulting in huge losses. For example, investors think that a stock will fall in the future, so they sell it to a securities company, but a stock not only does not fall, but even skyrockets. For short-selling investors, not only the principal loss, but also the leverage loss of securities lending are called short positions.
For securities investors, short positions mean that losses have fallen below the liquidation line. At this time, the proportion of protection will be reduced. If the margin is not added, the brokerage firm will be forced to close the position, and the losses and handling fees caused by the forced liquidation will be borne by the investors themselves.
In the futures market, short position is also a meaning. Because futures can buy up and down, investors who buy down have made empty orders, but the market outlook has risen against the trend, resulting in huge losses.
Generally speaking, for investors who do not have margin financing and futures options, there will be no short positions, because there will be no short positions unless the stock price falls to 0 yuan.