Is it necessary to force selling when stocks are liquidated?_Why is it necessary to force selling of stocks?

Is it necessary to force selling when stocks are liquidated? When our stocks are liquidated, it is Wouldn't it be better to sell it directly? The following is what the editor has compiled for you: Do you need to force sell stocks when a stock is liquidated? I hope it can help you.

Is it necessary to force the sale of stocks when a stock liquidation occurs?

Whether it is necessary to force the sale of stocks when a stock liquidation occurs, and why forced selling measures are taken, mainly depends on the lender and financial institution Agreements and regulations between institutions or broker-dealers. Under normal circumstances, stock liquidation will trigger forced selling for the following reasons:

Maintenance margin requirements: In stock pledge financing, financial institutions or securities firms will stipulate a certain maintenance margin ratio, and investors must provide Required security deposit. If the stock price falls resulting in insufficient maintenance margin, financial institutions or brokers have the right to take forced selling measures.

Control risks: Financial institutions or securities firms have the responsibility to manage risks when providing loans or leveraged transactions to avoid the situation where the borrower cannot repay the loan. When stock prices fall sharply, financial institutions or brokerages may choose to force sell stocks to reduce risks in order to prevent lenders from further losses.

Market liquidity: Some lenders need to use stocks as collateral for financing, turning the stocks into liquid funds. In extreme market conditions, prices fall and trading in stocks may be restricted, which affects the exposure of lenders and financial institutions or broker-dealers. To protect the interests of all parties, forced selling can provide a means to resolve liquidity issues.

It should be noted that the policies and regulations of each financial institution or brokerage may be different. When faced with the risk of liquidation, the agreement between the lender and the financial institution or securities firm will determine whether to take measures such as forced selling. In actual operations, it is recommended to communicate with relevant financial institutions or securities companies in a timely manner to understand specific policies and solutions, and make appropriate decisions based on personal circumstances.

Will it be forced to sell after the stock price plummets?

As long as the stock is not purchased with financing, it will not be forced to sell. If the investor's margin for stocks purchased through financing is insufficient or the margin financing debt has not been repaid when due, the securities company shall take forced liquidation measures in accordance with the agreement and dispose of the customer's collateral, and the shortfall may be claimed from the customer. The funds obtained from closing positions will be used first to pay off debts owed by customers, and the remaining funds will be credited to the customer's credit fund account.

What should you do when stocks rise and fall?

It is relatively normal for stocks to rise and fall. You need to be optimistic about how much the stock will fall and how much it will rise. For example: Suppose you buy a certain stock. , fell 6%, rebounded 4% to give investors some hope, fell another 5%, rebounded 2%, if this continues to rise less and fall more, then when it falls to a certain level, it will definitely We must learn to stop losses in time to avoid greater losses.

You can set a stop loss point when the stock falls, for example: 20%. When the stock falls to 20%, redeem the stop loss. Don't let the stock continue to fall. Many investors speculate in stocks. Losing money is because the stock fell and then rebounded, feeling that I saw hope. Then it fell again and rebounded, but it always fell more and rose less. If this goes on for a long time, you will suffer serious losses.

If it rises more and falls less, it means that the stock is still good. You can consider holding it for a long time, but you must also learn to stop profits during the long-term holding process. Set a profit stop point, because when the stock rises to a certain level, it may fall again, so it is also very important to stop selling in time. Generally speaking, the risk of stock trading is very high. When operating, everyone must Be cautious.

How to buy stocks on mobile phones

The specific operations of buying stocks on mobile phones are as follows:

1. First, to buy stocks on mobile phones, we need to have a stock of our own. For trading accounts, if you do not have a stock account, you need to open a stock account first, and then you can conduct corresponding stock transactions. The steps to open a stock account are relatively simple. You can open an account online or offline. Nowadays, most people prefer to open an account directly online instead of going to an offline business office. After opening an account online and downloading the trading software, Click to open an account and follow the process. Prepare your ID card and bank card. It can be completed in more than ten minutes. To open an account at a business point, just bring your ID card and bank card to the business point to open an account.

2. After we have our own stock trading account, we need to make a bank-securities transfer. The capital account and the stock trading account are not the same account. Before stock trading, the funds must be transferred to the stock account.

3. After the previous preparations are completed, we need to select stocks and choose appropriate stocks for trading based on our own risk tolerance and the amount of funds. The minimum stock trading lot is one lot, which is one hundred shares. For example: If an investor has 5,000 yuan of idle funds to use, he can only choose to trade stocks with a stock price below 50 yuan. If the stock price is greater than 50 yuan, then the funds in hand are not enough, so Unable to complete transaction.

4. After buying a stock, sell the stock at a high price based on your own judgment, so that you can earn the difference in price, and the buying and selling of a stock is over.

Under what circumstances will a stock liquidate?

Liquidation will only occur in margin trading, mainly futures. In the stock market, money is paid one hand and delivered the other hand. You can transfer money online and get the money there. If there is no margin, there will be no liquidation. What's more, there are national policies in place, and there are domestic price limits and price limits, so liquidation rarely occurs.

If the loss is close to the liquidation line during the session, the futures company will notify you to cover the position. If you do not cover the position, you will be forced to close the position. If you have an order in your hand that is about to be liquidated, and if you jump away from it the next day, your position may be liquidated in an instant. If the account balance is insufficient and there is insufficient cash, the account equity may be negative. When the number is negative, investors need to make up the shortfall, otherwise they will face legal recourse.