What does the fund closure mean? What is the different relationship with fund liquidation? I believe many people want to know about it, so on this basis, what is liquidation brought by Bian Xiao, hoping to help you.

What does the fund closure mean?

Fund liquidation refers to the redemption of funds held in the hands, that is, selling. Because the liquidation of funds is a technical term used in the stock market, everyone can only understand it as liquidation without words, so there is no formal noun explanation. Liquidation is a term derived from commodity futures trading, which refers to the trading behavior of one party in futures trading to cancel the futures contract bought or sold before. Closing a position is a general term for selling stocks bought by bulls or buying back stocks sold by bears in stock trading.

It is said that foundations make good investments, but in fact, the fundamental reason why funds can make money by fixed investment is that the funds you invest in are good. This is the most important factor, and other skills are actually secondary. Generally speaking, index funds will be recommended, such as SSE 50, CSI 500 or the most representative CSI 300 index, which will be profitable in the long run. After all, the companies represented by these indexes are the best companies. So it is no problem for you to invest in these index funds. If it is an industry fund, it may be a loss.

Do you really understand liquidation?

First of all, hedging liquidation is like free love, which is a completely independent behavior of investors. When the market trend is in line with expectations, you can sell it in time, buy low and sell high to make a profit. Or buy put contracts that have been sold, buy high and sell low, and earn the difference. When the market trend is inconsistent with investors' expectations, closing positions in time can also effectively stop losses.

In contrast, compulsory liquidation, like arranged marriage, is a compulsory act. Qiangping is also called short. When the investor loses too much and the trading margin is insufficient, whether you like it or not, the institution will force the liquidation. For example, futures trading uses a leveraged trading system. Investors can play big deals with small funds. Once encountering a strong product, investors are likely to suffer heavy losses under the leverage amplification effect.

What does the liquidation line mean?

People who do financial management know what liquidation is. The so-called liquidation is an operation of selling the data of western financial management. The liquidation line set by the fund company means that investors of investment funds stop their losses and ensure the safety of funds.

When many investments encounter losses, if they can't stop losses in time, the losses will continue to occur, causing irreparable losses. Therefore, it is necessary for the fund to set up a liquidation line to ensure the safety of funds.

Public Offering of Fund's liquidation line is relatively rare, more common in private equity funds.

Private equity funds are generally reached between investors and private equity funds. If the stock market is not good and the net value of private equity funds drops to 0.7 or 0.8, private equity funds will sell shares and dissolve to protect investors from further losses. Private equity funds with poor performance will be dissolved every year, especially this year.

Risk control in Public Offering of Fund is relatively good and rare.

Sell a stop loss when the stock price falls to a predetermined price.