What exactly is the meaning of fund liquidation?

I believe many people who see other people buy funds and get considerable profits are eager to get their own benefits in the fund, but we need to know some knowledge before buying. The following is what the fund liquidation means for everyone, hoping to help everyone.

What does the fund liquidation mean?

The fund liquidation refers to the redemption of the fund held in your hand, which means selling it. The so-called liquidation is active and passive. The initiative is to sell stocks or funds yourself. Passive liquidation is forced liquidation, that is, forced sale of the fund you hold.

liquidation is a term derived from commodity futures trading, which refers to the closing behavior of one party in futures trading in order to cancel the futures contract bought or sold before.

liquidation is a general term for the behavior of selling the stocks bought by bulls or buying back the sold stocks by bears in stock trading.

liquidation can be divided into hedging liquidation and forced liquidation. Hedging liquidation means that futures investment enterprises sell futures contracts in the same delivery month by buying them in the same futures exchange, so as to close the futures contracts previously sold or bought.

forced liquidation refers to the third party (futures exchange or futures brokerage company) other than the position holder forcibly closing the position of the position holder, also known as being cut or cut.

What exactly is a Fund

There are broad and narrow definitions of a fund. In the broad sense, it refers to a certain amount of funds set up for a certain purpose, such as trust and investment funds, provident funds, retirement funds, etc. In the narrow sense, it refers to funds with specific purposes and uses. Usually, the fund refers to securities investment funds.

The income of the securities investment fund comes from the future, and the performance of the income is closely related to the performance of the underlying market of the investment target, which has certain risks.

Classification

According to different standards, securities investment funds can be divided into different types:

(1) According to whether fund units can be increased or redeemed, they can be divided into open-end funds and closed-end funds. Open-end funds are not traded on the market (it depends on the situation), and the fund size is not fixed through subscription and redemption by banks, brokers and fund companies; Closed-end funds have a fixed duration, generally listed and traded in securities exchanges, and investors buy and sell fund units through the secondary market.

(2) According to different organizational forms, it can be divided into corporate funds and contractual funds. Funds are established by issuing fund shares to establish investment fund companies, which are usually called corporate funds; Fund managers, fund custodians and investors are established through fund contracts, which are usually called contractual funds. China's securities investment funds are all contractual funds.

(3) According to the difference of investment risks and returns, it can be divided into growth funds, income funds and balanced funds.

(4) According to different investment objects, it can be divided into stock funds, bond funds, money market funds, futures funds, etc.

What exactly is the so-called fund liquidation?

It refers to the redemption of the fund held in your hand, which means selling it. Because the liquidation of the fund is a technical term applied in the stock market, everyone can only understand the liquidation without words, so there is no formal noun explanation.

liquidation is a term derived from commodity futures trading, which refers to the closing behavior of one party in futures trading in order to cancel the futures contract bought or sold before. Closing positions is a general term for selling the stocks bought by bulls or buying back the stocks sold by bears in stock trading.

the so-called liquidation is active and passive. The initiative is to sell your own stocks or funds and stop playing. Passive liquidation is forced liquidation, that is to say, you are not allowed to play, and you are forced to sell the fund you hold. As for whether you lose money or make money, it is your own business.

When buying stocks or funds, the most common words are: short position, open position and close position. It is easy to confuse close position with short position. Closing a position means buying and selling, or buying after selling. Specifically, for example, redeeming a fund today, and after the redemption funds arrive, purchasing another fund with the redeemed funds is equivalent to adjusting your own fund holding portfolio, but the total amount of funds remains unchanged. If it is long, it is the liquidation of the subscription fund. If it is short, it is the liquidation of the redemption fund.