When we are short or long in the market, is there a certain risk of short positions? Many people are very afraid of short positions. If they can, they basically don't want to be short. Therefore, Bian Xiao specially brought an empty position to everyone, and it is possible to explode the position. I hope you like it.
Is it possible to short long positions and explode all positions?
Short positions and long positions may break out, depending on different trading strategies, risk management and market fluctuations. Here are some situations that may lead to short positions:
Insufficient margin: if leverage is used for trading, and the margin balance in the account is lower than the level stipulated by the exchange or brokerage firm, the short position mechanism may be triggered.
Violent market fluctuation: Violent price fluctuation may lead to the failure to execute the stop-loss order in time, which will expand the loss beyond the acceptable range and lead to short positions.
Excessive leverage: excessive use of leverage may increase the risks faced by investors. When the market trend does not meet expectations and develops in the opposite direction, excessive leverage may lead to loss accumulation and eventually lead to short positions.
Exchange regulations: Different exchanges or brokers may have different regulations and mechanisms on short positions. For example, they may set specific margin requirements or compulsory liquidation rules.
It is important to realize that there are risks in trading and investment, and make adequate risk management and strategic planning. It is an important step to understand the rules and policies of the exchange and set up reasonable stop-loss orders and risk control measures to avoid short positions. In addition, investors should carefully choose the leverage ratio and conduct appropriate risk assessment and fund management according to their own affordability.
Will futures grow to an explosion?
Futures, whether long or short, may break out. It depends on how much money you have. For example, you have 500,000 yuan in it, the price of first-hand stock index futures is about 6,543,805 yuan, and you still have 350,000 yuan available. Every point of stock index futures is 300 yuan, so if the stock index futures fall more than 654.38+065.438+000 points, you will burst.
How to explain the explosion phenomenon of warehouse
Short position phenomenon, because the market changes too fast, the deposit in the account is not enough to maintain the original contract, and investors can add the deposit. This kind of margin for forced liquidation due to insufficient margin is "zero", commonly known as "short position". If investors encounter "short positions" and suffer heavy losses, they will force them to close their positions in securities or futures, regardless of the market at that time. Most short positions are related to improper fund management. In order to avoid this situation, it is necessary to control positions in particular, manage funds reasonably, and avoid possible Man Cang operations in stock trading; And unlike stock trading, investors must track the stock index futures market in time. Therefore, stock index futures are not suitable for all investors.
Will Man Cang stock explode?
Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. In the A-share market, investors will not explode their positions in ordinary transactions. Even if the stock price falls and investors suffer huge losses, as long as investors do not take the initiative to sell stocks, they will continue to hold stocks. Of course, if investors buy stocks and their companies go bankrupt, investors will apply for compensation, and listed companies will make corresponding compensation according to the stocks they hold.
Investors carry out margin trading, that is, borrow money from securities companies and buy a stock. Considering the risk, the securities company will agree with investors on the liquidation line, that is, when the stock price falls and the loss reaches the liquidation line, the securities company will remind investors to add margin. If investors add margin to maintain losses, there will be no short positions. If investors do not add margin, there will be short positions, that is, securities companies are forced to close their positions.
Does the spot price necessarily rise when futures rise?
Futures is the spot forward price, which is an expectation, so in most cases, the price trend of futures and spot is the same. However, the rise in futures prices does not mean that the spot will definitely rise. Because futures contracts include far-month contracts and near-month contracts, the futures prices of near-month contracts are generally synchronized with the spot prices; The spot corresponding to the distant month futures may rise or fall.
Spot reflects the current supply and demand price, while futures reflect the future price. Therefore, if the capital market is well funded, the futures contract may be speculated, but the short-term speculation of futures contracts has little effect on the spot in the distant month, so the spot in the distant month may not necessarily rise.
Generally speaking, the futures price fluctuates with the spot price, so the spot price-futures price = basis. When the basis is positive, it means that the spot price is higher than the futures price, which means that the supply of materials is in short supply. At this time, you can make a long contract; On the other hand, the basis is negative, indicating that there is a surplus of goods. We all know that scarcity is the most expensive thing, and too much inventory will lead to oversupply, so we can short futures contracts.