Who should we compensate after the fund explosion? For everyone, it seems that the compensation objects for short positions of funds are not the same. The following are the compensation objects for short positions brought by Bian Xiao. I hope you like them.
Compensation object of short selling fund
The compensation object of short-selling funds is mainly the investors of funds. According to the principle of fund operation, the fund manager is responsible for managing investors' funds and investing according to the investment strategy agreed in the fund contract. If the fund's short position causes investors to suffer losses, the fund manager may need to bear corresponding responsibilities.
Under normal circumstances, fund managers will perform their obligations according to laws and regulations and fund contracts to protect the legitimate rights and interests of investors. If the fund manager fails to perform his duties, commits illegal acts or seriously neglects his duties, resulting in short positions in the fund, it may be necessary to compensate investors.
However, the specific issues of compensation may involve the intervention of laws, regulatory agencies and the agreement of relevant contract terms. Therefore, in the event of losses caused by fund explosion, investors should consult professional institutions or lawyers in time to understand their rights and interests and related compensation ways, and take corresponding legal measures to safeguard their rights and interests according to specific circumstances.
What do you mean by exploding positions?
A short position means that the loss is greater than the deposit in the account. After the company becomes stronger and more balanced, the remaining funds are the total funds MINUS the losses of investors, and usually there will be a part left.
Exploding positions is a common financial statement, and it happens now because of leverage. The simplest understanding of leverage is to borrow money to enlarge your own funds to invest.
If there is an explosion, the consequences will be more serious. If the deficit is caused by short positions and investors themselves, then investors must make up the deficit, otherwise they will face legal recourse.
What will happen if the fund explodes?
1. For fund managers, the exposure of private equity funds may damage their reputation, dampen investor confidence, and may be held accountable by the regulatory authorities.
2. For investors, the risk exposure of private equity funds will directly lead to the loss of their investment principal, and even face the risk of total loss in extreme cases.
3. For the whole market, the exposure of private equity funds may lead to negative effects such as tight market liquidity and stock price plunging, and even lead to systemic risks.
What is futures?
Futures is a trading method that spans time. By signing the contract, the buyer and the seller agree to deliver the specified quantity of spot at the specified time, price and other trading conditions.
Futures are concentrated in futures exchanges and traded through standardized contracts. Some futures contracts can be traded through over-the-counter trading, which is called over-the-counter contract. According to the types of subject matter, futures can be divided into commodity futures and financial futures.
Transaction characteristics
bidirectional
One of the biggest differences between futures trading and stock market is that futures can be traded in both directions, and futures can be long or short. When the price rises, you can buy low and sell high, and when the price falls, you can sell high and make up low. Going long can make money, and shorting can also make money, so there is no bear market in futures. In a bear market, the stock market will be suppressed, while the futures market will remain unchanged and opportunities will still exist. )
low cost
Futures trading countries do not levy stamp duty and other taxes, and the only cost is the transaction fee. The procedures of the three domestic exchanges are about two ten thousandths or three ten thousandths, plus the additional fees of brokers, and the unilateral handling fee is less than one thousandth of the transaction amount. Low cost is the guarantee of success.
The methods to avoid warehouse explosion are as follows:
1, set a stop loss position, and when the market fluctuates too much, a reasonable stop loss can avoid the risk of capital loss;
2. Don't operate heavily, which will easily lead to insufficient margin and insufficient funds to resist the risk of market fluctuations;
3, don't have a gambler mentality, no one in the market can predict the future, and rational investment is the long-term way;
4. Manage funds reasonably. Although heavy positions or Man Cang operations are profitable, they also have risks. Reasonable fund management can avoid risks to the maximum extent, at the same time, it can also make profits smoothly and avoid the risk of warehouse explosion.