What do you mean by closing and opening stocks? Will the liquidation of stocks lead to short positions? Is there any other connection between the two? The following is Bian Xiao's concept of closing stock positions for everyone. I hope you like it.
The concept of stock liquidation and explosion
Stock liquidation and short position are two different concepts.
Stock liquidation refers to the behavior of investors to actively sell their own stocks in order to achieve profit or stop loss. According to their own judgment and strategy, investors sell stocks at the right time to obtain expected returns or limit losses.
Stock explosion refers to the situation that stocks are forced to sell or close their positions because they cannot meet the requirements in the pledge contract. When the pledgee fails to maintain the pledge rate stipulated in the contract or violates the terms of the contract, the pledgee has the right to dispose of the compulsory pledge through liquidation. In this case, the pledgor may face huge losses.
Although both closing positions and short positions involve selling stocks, closing positions will not directly lead to short positions. Their trigger conditions and purposes are different. Under the principle of risk management, investors can take appropriate liquidation operations to balance risks and benefits, thus avoiding risks that may lead to short positions. However, in the case of stock pledge, if the contract requirements cannot be met or the contract terms are violated, it may lead to the risk of short positions.
What are short positions and liquidation?
Opening and closing positions are sequential, and closing positions may be triggered by opening positions.
The short position is because the stock price falls to the financing liquidation line after the investor carries out financing. At this time, not only the account loses money, but also the margin is lower than the maintenance guarantee ratio.
Therefore, after the explosion, investors will have to add margin to maintain the decline in the guarantee ratio. If investors don't add margin at the prompt of brokers, they will all be sold by the brokerage system, and the losses and handling fees caused by liquidation will be borne by investors.
Generally speaking, the guarantee ratio is lower than 130%, and if collateral is not added in time, it may face the risk of being forced to close the position by the securities firm.
For example, customer A has its own capital of 654.38+million yuan, raised 200,000 yuan in a securities company, and bought a stock at the total price of 10 yuan. At this time, the maintenance guarantee ratio is (65,438+million+200,000)/200,000 = 65,438+050%, but when the stock price falls to 6 yuan, the maintenance guarantee ratio is even lower.
What do you mean by stock pledge explosion?
Refers to borrowing money with shareholders' equity as collateral. For example, the original equity stock in his hand has a market value of10 billion, and he borrowed 4 billion for business operations. But when his share price falls, the market value of10 billion will shrink, and brokers or banks that lend money to shareholders will set up a compulsory liquidation line. For example, if the market value is less than 4.5 billion yuan, compulsory liquidation measures will be taken. Once the position is exposed, a large number of controlling shareholder shares will be sold.
market supervision
In terms of market supervision, both the CSRC and the CBRC have carried out strict supervision on pledged stocks. 20 18, 10 In June, the CSRC issued "Several Provisions on Regulating the Behavior of Related Parties of Listed Companies, such as Major Shareholders and Directors to Reduce their Shares", which clearly stipulated the times and time intervals for major shareholders and directors to reduce their shares, and restricted the pledged shares. In addition, the CBRC also regulated the pledged stock business of banks, requiring banks to strengthen risk management and avoid the occurrence of short positions.
What if it explodes?
There was no remedy after the explosion. Forced liquidation will be carried out after the explosion, and the losses will be borne by the investors themselves. The margin added by investors before the short position will not lead to the short position.
A short position refers to an investor's loss during the transaction, but there is not enough money in the investor's account to make up for the loss. If the general account has no funds and the margin is lost by half, he will be forced to close his position. The main reason for the short position is that the position is too heavy. After the occurrence of short positions, investors can only continue to trade if they continue to transfer funds.