How to treat the financing explosion is something that many people want to find out, and it needs to be solved by consulting relevant information. According to years of learning experience, how to treat the financing explosion can make you get twice the result with half the effort. Here are some related methods and experiences on how to treat the financing explosion for your reference.
How to treat the financing explosion?
Financing explosions mainly depend on the proportion of account guarantees. When the guarantee ratio of investors is less than 1, that is to say, the available margin is not enough to make up for the margin of futures contracts signed by futures companies. Financing explosion in futures refers to the financing party (mostly in the case of limited funds or urgent need for money), operating after financing, insufficient account margin, and forced liquidation.
/kloc-how much did the leverage drop by 0/0 times?
Short positions are an extreme situation, which means that investors not only lose the initial principal, but also lose all the invested funds. The reason for short positions is usually that investors borrow too much money in leveraged transactions or risky trading products.
In the case of leverage of 10 times, if the initial principal is 100 yuan, when the investment loss reaches 100 yuan, the liquidation will be triggered, and investors will explode at this time. If the market falls by 20%, that is, 100 yuan falls in 20 yuan, then investors need to bear the extra loss of 100%, that is, short positions.
Therefore, in order to avoid short positions, investors should choose appropriate leverage and trading products and control their own risks.
What does financing liquidation mean?
Financing liquidation means that some investors outside the stock market end their position financing by repaying the stock pledge loan.
What does capital explosion mean?
There are two situations in which funds break out:
1. Forced liquidation: When the investor's margin is lower than the net account value of the trading contract, and the investor fails to take appropriate measures within the specified time, the futures company will take forced liquidation.
2. Burst posture: Burst posture means losing all blood. In this case, there will generally be a large loss, and the remaining margin in the account is not enough to offset the loss.
Under what circumstances will a warehouse explosion occur?
The explosion occurred under the following circumstances:
1. jiacang: Heavy betting is a very dangerous investment behavior. Once the market changes unfavorably, it will easily lead to Man Cang being tied.
2. No stop loss: This is a common reason for short positions. If no stop loss is set, even a small-scale unilateral market will cause short positions.
3. Bad mentality: The mentality of investors determines the height of investment. Market fluctuations, some people make money, some people lose money, and it is easy to have problems if the mentality is not well adjusted. Especially when the market reverses, there is not enough money to persist and bear market fluctuations.
4. Excessive leverage: Although high leverage may make you gain high profits, it may also be one of the reasons for your losses. When this kind of leverage is too big for you to carry, it is likely to return to before liberation overnight.
5. Continuous scanning loss: under the premise of not knowing how to control risks, heavy positions or blind cover positions may lead to explosive positions once scanning continuously.
In order to avoid the risk of warehouse explosion, we need to pay attention to the following points:
1. light warehouse operation, avoid heavy charge;
2. Set a stop loss to avoid short positions caused by unilateral market;
3. Maintain a good attitude, do not blindly follow the trend, and do not trade emotionally;
4. Choose the appropriate lever to avoid the explosion caused by high lever;
5. After continuous damage sweeping, sum up experience and lessons in time to avoid repeating the same mistakes.
This is the end of the introduction of the article.