Many people want to find out how much financing leverage has exploded, so they need to consult relevant information to solve it. According to years of learning experience, figuring out how much financing leverage is exploding can make you get twice the result with half the effort. Let's share the experience of financing leverage explosion for your reference.

How much financing leverage broke out?

The minimum position of financing leverage is _ _ _ 10 position _ _ _, that is, the ratio of available funds in the account to total funds is 10%. Under this ratio, if the price fluctuation exceeds 10%, it may trigger short positions. In order to reduce risks, investors should choose their positions according to their own conditions and try not to operate in Man Cang.

The difference between explosion and liquidation.

The main difference between short positions and closed positions lies in whether investors bear the losses themselves.

Short position means that when an investor opens a position, the amount of the position is too large, resulting in insufficient margin in the account. When the market fluctuates violently, the account may lose money, which may exceed the compulsory liquidation standard stipulated by the exchange, thus being forced to liquidate. This usually means that investors not only lose their investment principal, but also may lose their investment accounts.

Closing positions means that investors take the initiative to cancel positions that have been opened, including long positions and short positions. This will not cause losses to investors, but also lock in profits, which is especially common in futures trading.

To sum up, short positions are account losses caused by market fluctuations, while liquidation is the liquidation initiated by investors in order to cancel the opened positions.

How does financing break out?

There are two reasons for the explosion:

1. The position is too heavy. Once the prediction is wrong, the loss amount is relatively large, which will inevitably be affected by psychological endurance. You should lighten up your position at this time.

2. There is no stop loss. Investors should set the stop loss within their own risk tolerance range to control risks.

It should be noted that the risk of margin trading is high, and investors should invest cautiously.

Is margin trading a brokerage stock?

_ _ _ _ Margin financing and securities trading are not exactly the same _ _. Margin trading is a trading system, which means that investors can borrow money from securities companies to buy stocks and repay the loans within the agreed time limit. Brokerage stocks refer to stocks in the brokerage sector, which are mainly invested in securities companies.

What will happen after the financing explosion

After the financing explosion, investors need to add margin. If they can't add the margin in time, they will close their positions or force them to close their positions. If the amount generated by compulsory liquidation cannot cover the financing arrears and interest, it will constitute a credit default and bear the corresponding consequences.

This is the end of the introduction of the article.