forced liquidation is used in futures trading, that is, when the margin of your account is lower than that stipulated by the exchange because the price of the commodity futures you purchased moves in the opposite direction, and the margin cannot be paid in time, the exchange forcibly sells your position to control the risk.
question 2: what does liquidation mean? In the spot trading of gold, whether buying or selling, all new positions are called opening positions. Traders hold positions in their hands after opening positions, which is called holding positions. The liquidation is the trading behavior of a group of traders to close their positions. In the spot trading of gold, whether buying or selling, all new positions are called opening positions. Chang Yi holds a position in his hand after opening a position, which is called holding a position. The liquidation is the trading behavior of a group of traders to close their positions.
Question 3: What do you mean by opening a position? Opening a position is equivalent to buying something and putting it in your warehouse. Closing a position is equivalent to selling what you bought before from your warehouse.
Long positions (bullish): For example, the current market price of garlic is 1 cents a catty, and you feel that the market outlook will rise, so you buy 1 jins, which is long positions; No matter whether the market outlook goes up or down, if you sell garlic, it is a long position.
short position (bearish): For example, the current market price of garlic is 1 cents a catty, and you feel that the market will fall in the future, so you sell 1 jins, which is short position; Whether the market outlook goes up or down, if you buy garlic, this is a short position.
In fact, bulls are short in reverse.
question 4: what does compulsory liquidation mean? How much will it force liquidation? Forced liquidation is also called forced liquidation, also known as being cut/cut/exploded. According to the different subjects of forced liquidation, forced liquidation can be divided into exchange forced liquidation and brokerage forced liquidation.
according to the different reasons of forced liquidation, forced liquidation can be divided into the following categories:
1. Forced liquidation due to failure to fulfill the obligation of additional margin.
2. Forced liquidation due to violation of regulations. If a member or customer violates the trading rules of the exchange, the trading ownership will be forced to close the position in violation of the trading rules.
3. forced liquidation due to temporary changes in policies or trading rules. In previous years, this often happened, and the trading rules were often modified due to the temporary regulations of policies or regulatory authorities, or they could not be implemented normally temporarily.
Suggest direct Baidu: forced liquidation
Question 5: What does the spot forced liquidation mean? Forced liquidation, also known as bursting positions, piercing positions, cutting positions, etc., belongs to the platform system's means to control
risks. When the risk rate reaches a certain value, the system will automatically force liquidation, but the risk rates of different platforms are different. Generally, there are two platforms in China, 7% and 5%.
risk rate = occupied margin/current equity (net capital value)
current equity (net capital value) = occupied margin+available margin
Take crude oil as an example. As mentioned earlier, if the risk rate is lower than 5%, it will be forced to close the position. After the forced closing, the funds will not be zero, but the original order will occupy 5% of the margin. Of course, if there are more than two orders, they will not be flattened at once in a strong time, but will be flattened gradually, and the risk rate will be lower than 5% and then flattened.
Question 6: What do you mean by forced liquidation in futures? That is, the settlement margin in the account is not enough, and the available funds are negative, so you will receive a phone call from the futures company asking customers to liquidate their positions themselves or add margin, otherwise the futures company will help you to level the balance.
Question 7: What does it mean to liquidate stocks? What is the situation that will be closed? There is no liquidation without borrowing money to buy stocks. Only those who borrow money for leveraged transactions have closed positions.
Here's an example:
You own 1 million, lend me 1 million, and * * * 2 million. The agreed liquidation line is 11%. If this 2 million falls to 1.1 million, I will ask you to add a margin, otherwise you will lose not only your own money, but also my money. If you don't add, I'll forcibly sell all your remaining shares and return my 1 million.
Question 8: What does it mean to close a position in precious metals? Opening a position means buying or selling at the time of trading.
Holding a position means holding the contract all the time.
Closing a position means selling or buying at the time of opening a position, which means that the transaction of a contract is completed.
Question 9: What does it mean to force the spot crude oil to close its position? Forced liquidation in spot crude oil is also called forced liquidation, also known as being cut or cut. The exchange or the member unit will forcibly close your position according to the corresponding regulations.
In general, the positions may be forced to be closed under the following circumstances:
1. The remaining available funds are less than zero and cannot be replenished within the prescribed time limit; (refer to the regulations of the corresponding exchange for details. If the risk rate is less than 5%, the risk rate is the net account value divided by the occupation margin *1%)
2. The position exceeds the position limit standard and fails to close the position within the specified time limit;
3. Being punished by forced liquidation due to violation of regulations;
4. Other positions that should be closed by force.
question 1: what does compulsory liquidation mean? 2, yuan can be converted into 1 million yuan for trading in the stock market through capital allocation. However, the allocated funds cannot be used as venture capital for floating profit and loss. After 1 million Man Cang entered the market, after a loss of 2, yuan, the capital allocated will not take risks with reference. Most of the allocation of funds, forced liquidation after the loss of principal.
to put it simply, after the loss of 2, principal. The 8, yuan allocated directly does not carry out floating profit and loss. 2, forced liquidation