Fund stocks that were liquidated and liquidated on Friday_What is liquidation and liquidation

What is liquidation? What is liquidation? How do we need to have a certain understanding of these two concepts in the fund market? ?The following are the fund stocks that the editor brought to you. I hope it can help you.

Fund stocks with liquidated positions

Liquidated position is one of the futures terms, which refers to the risk situation in which the customer’s equity on the customer’s account is negative, that is, the customer will not only open the position before All the margin on the account was lost, and I still owed money to the futures company.

Liquidation refers to the situation where the customer's equity in the investor's margin account becomes negative under certain special conditions. Liquidation means that the loss is greater than the margin in your account. The remaining funds after liquidation by the company are the total funds minus your losses, and there is usually a portion left.

When the market conditions undergo major changes, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, due to the leverage effect of margin trading, It is easy to have a liquidation. If the liquidation causes a loss and it is caused by the investor's fault, the investor needs to make up the loss, otherwise he will face legal recourse.

The impact of fund liquidation on investors

1. They will lose money. When the fund liquidates, the equity in the investor's margin account will be negative, indicating that the liquidation will result in losses.

2. There is no way to remedy it. When a position is liquidated, the system will force the position to be liquidated. The fund cannot handle the redemption, and investors need to bear all losses.

But under normal circumstances, the chance of a fund liquidation is very small. When purchasing funds, investors should pay attention to the fund's historical performance and operating conditions to avoid buying funds that may be liquidated.

If the investment fund is currently in a state of loss, but there is a rebound trend in the future, investors can consider appropriately covering their positions and increasing their investment amount. This applies to fund products with excellent historical performance and good management. On the other hand, if investors do not want to take high risks, it is recommended to choose low-risk funds from the beginning.

Is it likely that the fund will lose a negative number? If the fund's operating conditions are not good and continues to decline, it will be liquidated after certain conditions are met, so the chance of a negative loss is very low. Basically This rarely happens. According to relevant regulations, if the net asset value of a fund is less than 50 million yuan for 60 consecutive days, it may be liquidated.

Factors affecting fund liquidation

1. Market risk

Market risk is one of the most important factors leading to fund liquidation. When market conditions are not good, many investors will choose to redeem fund shares, causing fund managers to need to sell assets held to meet redemption needs. However, in the event of poor market conditions, these assets may not be liquidated quickly, resulting in a further decline in the fund's net value.

2. Leverage risk

Leveraged trading means that investors borrow capital to conduct transactions. In leveraged trading, even small market fluctuations may result in large losses. Therefore, investors need to be very cautious when engaging in leveraged trading.

What will happen if the fund liquidates?

1. For fund managers, the liquidation of private equity funds may cause damage to their reputation, break investor confidence, and may lead to Regulatory authorities will hold them accountable

2. For investors, the liquidation of private equity funds will directly lead to the loss of their investment principal, and in extreme cases, they may even face the risk of total loss.

3. For the entire market, the liquidation of private equity funds may lead to negative impacts such as tight market liquidity, plummeting stock prices, and even trigger systemic risks.

Can I still keep the fund if it drops by 30%?

Whether I can keep the fund if it drops by 30% depends on the situation. It mainly depends on whether the fund has the possibility of rising. If a fund has no possibility of rising, it is due to losses caused by the fund itself, but investors feel that they are already losing money and just want to make money back. But if there is no redemption, then they will lose more and more. of.

So whether you can keep the fund if it drops by 30% depends on the situation. Only when the fund still has the possibility of rising, can you keep it if the fund drops. You can keep it when the fund drops. Increase your position and make money when the fund rises.

When covering positions, there are also methods. For example: set a drop, and add positions once when the fund drops by 5%, 10%, 15%, or 20%. The drop can be based on Set according to your own situation. Once the price falls, you will increase the position once, and the amount of each increase will gradually increase. Just be aware that the risk of covering a position is relatively high. If the fund keeps falling when you choose to cover a position, the loss will be aggravated.