Shorting stocks will also be forced to close positions? When exactly does it close? Maybe many Xiaobai, who just came into contact with this knowledge, want to find out this point, so Bian Xiao brought it to everyone when the short stock was about to close, hoping to help you.

When will the short stocks be closed?

In the stock market, we often hear the saying of forced liquidation, which is often caused by leverage. Under normal circumstances, as long as you don't leverage stocks, you won't be forced to close your position. What are the reasons for being forced into liquidation? To sum up, there are four points:

First, if you trade stocks through the margin financing and securities lending business of the brokerage firm, then when you fail to fulfill the obligation of additional margin, the brokerage firm will force you to close your position. Once there is a loss after stock financing, brokers have a liquidation line. Once you touch this liquidation line, if you don't continue to add margin, the broker will inform you of the additional margin in advance. If you don't make up within the specified time, borrowing is forced liquidation.

Second, when the number of positions in our contract account exceeds the position limit set by the exchange, if the option management institution fails to close the position in time as agreed, it will also be forced to close the position.

3. Once you violate the trading rules of the exchange, the trading ownership forcibly closes your illegal position.

4. In rare cases, there may be forced liquidation due to temporary changes in policies and trading rules, that is to say, the regulatory authorities temporarily revised the regulations, or the state temporarily revised the policies.

Of course, the first situation above is the most common. Under normal circumstances, as long as you don't finance and leverage stocks, you only use your own money to stocks. As long as you can bear the loss, you won't be forced to close your position. Here, I advise you to be cautious when the leverage risk doubles.

When does the stock close?

Generally, when the guarantee ratio is lower than 130%, investors who have not added collateral after being reminded by listed companies will be forced to close their positions. There are two possibilities after liquidation: one is that there is a surplus after returning the funds of the securities firm; The other is the money owed to the securities company after the return. At this time, brokers have the right to collect debts.

There is also a compulsory liquidation of listed companies. If the shares pledged by listed companies or company executives fail to be redeemed after the pledge expires or the redemption is postponed, then the transferor of funds has the right to carry out compulsory liquidation.

Leveraged stock closing rules

The word liquidation was originally spread from commodity futures trading, which refers to the trading behavior of one party in futures trading to cancel the futures contract bought or sold before. In this way, as far as stocks are concerned, the word "stock liquidation" means selling all the stocks, and stock liquidation means selling all the existing stocks at the current price, in other words, clearing the positions.

The usual rule of stock leveraged trading is equivalent to setting a stop-loss line. Once it falls below the stop loss line, it will be forced to close the position. On the whole, for example, when the guarantee coefficient is lower than 130%, set the stop loss of the brokerage liquidation line. Except for the stocks with the R mark, the trading varieties cannot be leveraged.

Ordinary individuals and institutional investors need to meet the following conditions when opening credit accounts:

1, which requires half a year's first securities trading experience in ordinary accounts;

2, nearly 20 trading days before opening an account, the average daily assets in the account will not be less than 500 thousand yuan (including capital and securities market value);

3. Risk tolerance can only meet the requirements of C4 growth and above;

4. The credit rating cannot be lower than 60 points.

Under what circumstances will stocks be forced to close their positions?

1 Stock pledge: listed companies or shareholders of listed companies pledge shares. When the pledge expires or is not redeemed at the time of deferred redemption, when the stock price reaches the liquidation line, the shares will be forced to liquidate.

2 Stock delisting: After the stock is delisted and closed, the investor's stock may also be forced to close.

Margin financing: Investors borrow money from securities companies by providing collateral for margin financing and securities lending. Once the stock price falls to the liquidation line, investors will be forced to liquidate their positions without additional collateral.

4 capital allocation: stock investors buy stocks through over-the-counter channel capital allocation and leverage. Once the stock price falls to the liquidation line, the stock will be forced to liquidate.

What will be blocked by the stock market?

According to the normal operation, as a retail investor in the A-share market, there is no such thing as liquidation except the pledge of shares by listed companies. If the subject is a retail investor, then the liquidation must be leveraged through two financing. If you don't add margin to touch the liquidation line, there is basically not much money left!

If you are talking about borrowing money for stock trading, you can't continue to operate if you are blocked by the platform. Of course there is a solution.

It is necessary to know that the platform for borrowing money for stock trading has a strict risk control system, and an early warning line and a flat warehouse line will be set according to the size of investors' funds. However, when investors lose money in stock trading and touch the warning line, the system will inform investors in time whether to add margin. If you touch the liquidation line, you will be forced to close the position by the platform to prevent further losses.