Why can the fund make up the position when it falls? You need to consult relevant information to understand. According to years of learning experience, if you find out why a fund can make up its position after falling, it will make you get twice the result with half the effort. Let's share the relevant experience of why the fund can make up the position after the decline for your reference.

Why can the fund fall to cover the position?

When the fund falls, investors can choose to cover their positions. In the bear market stage, covering the position after the fund falls can effectively reduce the investment cost. However, it should be noted that it is not necessary to make up the position when the fund falls, and investors should decide whether to make up the position according to market conditions.

Covering positions can be understood as additional investment. When the fund falls, investors make additional investments, that is, make up positions, which can dilute the cost price and effectively reduce losses when the fund rebounds.

However, it should be noted that investors should pay attention to market conditions when covering positions. If the market is not good and continues to fall, the cost price will be diluted and even lose money.

Can the skyrocketing funds cover the position?

After the fund rises sharply, investors can choose to cover their positions or not. Different operation options will affect the cost of investors. The following are the advantages and disadvantages of covering positions:

1. Advantages: covering positions is a passive way to reduce positions. When the fund rises sharply, it can reduce the cost by covering the position. When the fund price continues to rise in the later period, it can get more income and reduce the pressure of holding positions.

2. Disadvantages: covering the position is to lighten the position when the fund rises sharply. Although it can reduce the cost, it may also miss the rising income and even lose money.

The cost of not covering the position may be higher than the current price, so please choose carefully.

What is the significance of fund covering positions?

The fund covering position is an investment strategy, which is mainly used to reduce the cost, that is, after the first purchase of the fund quilt cover, the fund will be invested in stages and continuously to reduce the cost of holding positions, and finally the cover will be released or the income will be increased by gradually covering positions.

Fund coverage skills

The skills of withdrawing funds are as follows:

1. Fixed investment method: Even if the market falls, fund managers must invest a certain amount of money every month to maintain long-term stable investment.

2. Stop loss method: Before buying a fund, investors should make a stop loss plan and choose a relatively low position. Once the fund price drops 10%, they will immediately lighten up their positions and sell them.

3. Capital preservation method: investors can consider choosing a balanced fund, which can resist the risk of market decline to a certain extent. Even if the market falls, some assets can increase in value.

4. Covering positions method: In the covering positions method, investors will calculate the cost required for covering positions according to the cost of the first fund subscription and the degree of market decline, and then continue to apply for funds according to this cost price.

Time to lighten the position after the fund covers the position.

The time to lighten the position after the fund covers the position depends on the net value of the fund and the amount of covering the position.

If the net value of the fund is relatively high, it needs to be operated carefully, and the number of times to cover positions and the timing to reduce positions need to be grasped. Generally speaking, it is suggested to cover positions in batches when the net value of the fund is relatively low, which can reduce the cost. After the cost is reduced to a certain extent, you can consider lightening your position and using the funds for other investments.

It should be noted that the timing of lightening positions needs to be considered in combination with the market environment and personal risk tolerance, and it is not possible to lighten positions blindly.

Why can the fund fall to cover the position? That's it.