The liquidation line can be understood as a mandatory stop loss line, which is a mandatory risk control measure to prevent the employer from losing money. So what's the difference between the stop loss line and the flat position line? What does the liquidation line 130 mean?

First, the difference between the stop loss line and the flat position line

Stop loss means that after you buy a stock, the stock price falls all the way and falls below your stop loss line. You need to cut the meat, or you will lose more.

The stop-loss line refers to your own rules in your trading principles. If you buy a stock, if it falls by more than a certain percentage, you will be out. This percentage is the stop loss line.

The liquidation line refers to: in the process of fund-raising cooperation, when the capital loss of the existing securities account and the initial securities account reaches a certain proportion, the employer has the right to force liquidation according to the contract. This ratio is the closing line of stock allocation (generally, the closing line of 1: 3 is 85%). It is often caused by the failure of traders to pay the deposit in time when the market is in extreme situations. At this time, the stock matching contract will be terminated in advance, and investors will be forced to close their positions.

2. What does the liquidation line 130 mean?

When the liquidation line 130% means that the maintenance guarantee ratio is lower than 130%, investors need to add collateral, and the additional maintenance guarantee ratio shall not be lower than 150%. If you occupy 6.5438+0.3 million yuan, regardless of the sum of interest and expenses, the total market value of securities in the cash+credit securities account is only 6.5438+0.3 million yuan, then you will ask for additional collateral, otherwise you will be forced to close your position.