What do you mean by short positions in hedge funds? How to understand the fund explosion? How to calculate the price of empty warehouse in general? The following are the short prices of hedge funds compiled by Bian Xiao, hoping to help you to some extent.
Hedge fund short position price
The calculation method of hedge fund short position price varies with fund strategy and trading method. Under normal circumstances, the short-selling price of hedge funds is that when the losses reach a certain level or the market conditions are unfavorable, the foundation is forced to close its position or sell its position as soon as possible.
The following is a simplified example to illustrate the calculation method of hedge fund short position price:
Suppose a hedge fund has a total investment of $6.5438+0 million, trades with a leverage ratio of 50% and holds a position worth $2 million. This means that the fund will increase its investment to twice its original capital by borrowing.
Now suppose that there is an important reversal in the market, resulting in huge losses for hedge funds and the risk of short positions. Fund managers can determine the trigger conditions and execution strategies of short positions according to internal regulations or agreements.
When the short position condition is reached, the fund manager can immediately close the position or sell it, so as to close the position as soon as possible and reduce the loss. In this process, the short selling price of the fund will depend on the tradable price and liquidity in the market.
It should be noted that the specific trading and risk control strategies of hedge funds are usually protected by strict confidentiality and trade secrets. Therefore, it is difficult for us to provide an accurate calculation method for the price of hedge funds.
If you are an investor or a hedge fund related person, and you are facing the risk of short positions or worried about losses, it is recommended that you contact the fund manager or trading platform in charge of your investment fund in time to obtain more accurate and specific information.
Calculation method of contract explosion price
The calculation method of contract short position price means that when the market price falls to a certain extent, it will trigger short position closing. At this time, the exchange will calculate the short position price according to a certain algorithm to close the position. The following are the specific steps of the contract price calculation method.
1. Calculate the forced liquidation price.
The forced liquidation price refers to the price that triggers the forced liquidation when the market price falls to a certain extent. It is calculated by the exchange according to a certain algorithm. Generally speaking, the forced liquidation price is equal to the opening price minus a certain percentage of the margin. The greater the proportion, the lower the forced liquidation price.
2. Calculate the value of forced liquidation.
Forced liquidation value refers to the position value of traders when the market price falls to the forced liquidation price. Equal to the number of open positions multiplied by the forced closing price.
3. Calculate the maintenance deposit
Maintenance margin refers to the amount of funds that traders must keep in the margin account. It is calculated by the exchange according to a certain algorithm. Generally speaking, the maintenance margin is equal to a certain proportion of the value of forced liquidation, and the greater the proportion, the higher the maintenance margin.
4. Calculate the price of short positions
Short position price refers to the price that triggers short position closing when the market price falls to a certain extent. Equal to the forced liquidation price plus the maintenance margin.
When will the fund explode?
There will be short positions, often because the fund losses are too serious. Generally speaking, it may be because the risk control of the fund is too poor, so the fund fell badly; It is also possible that the fund manager added leverage, but after adding leverage, stocks or bonds developed in the opposite direction, thus triggering short positions.
Generally speaking, Public Offering of Fund in China will not explode. However, if the asset allocation ratio exceeds 100%, that is, the fund manager leverages through bond pledge repurchase, then when the price of pledged bonds falls and some funds pledged by the fund manager suffer losses, it may cause great losses and lead to short positions.
Public Offering of Fund has strict institutional leverage restrictions on investment: the leverage ratio of open-end funds should not exceed 140%. For fixed funds, the closed period shall not exceed 200%, and the open period shall not exceed 140%.
Compared with Public Offering of Fund, private equity funds in China are more likely to break out, because the investment risk of private equity funds is higher. Especially for some equity private equity funds, when the companies they invest in are not listed, it means that private equity funds are in a state of loss, which is easy to cause short positions.
Can Alipay's fixed investment stop at any time?
The fixed investment of Alipay Fund can be stopped at any time. From the above, we can know how to stop the fixed investment of the fund. General funds are more suitable for fixed investment: index funds, stock funds, hybrid funds and other high-risk types, so the purpose of fixed investment is to spread risks, and these types of funds are relatively volatile, risky and relatively high, which are more suitable for fixed investment.
Monetary funds and bond funds have low risks, small capital fluctuations, and there is little difference between one-time investment and fixed investment. If you want to wait until you get paid every month, but don't want to take too much risk, then money funds and bond funds can also be fixed investment funds.
Buying fund skills
There are certain risks in buying funds through financial management, but there are many types of funds, and different types of funds face different risks after purchase. When purchasing a fund, users can choose the type of fund according to their risk-taking ability, such as common fund types: money fund, bond fund, mixed fund and stock fund.
The greater the risk users face when buying a fund, the more income the fund will get later. However, venture funds may lose their principal. It is best for users to use their own spare money to buy funds, so as not to affect their normal lives after losses, and they can't borrow money to buy funds.
Users generally choose positions with low net fund value when buying funds, so that they can get good returns after the net fund value rises in the later period. If you buy in a position with high fund net value, there will be losses after the subsequent fund net value falls. In order to avoid this situation, you should check the recent trend of the fund before buying.
When users invest in funds, it is best to use the method of fixed investment. Investing in the fund in this way can effectively reduce the holding cost of the fund, and users can get good returns after the fund rises. However, it takes a long time to buy funds with funds, and it is difficult to make profits in the short term.
Users can choose different channels when purchasing funds, such as banks, fund companies and third-party platforms. Users can choose the purchase channel according to their actual situation. When choosing a fund, you will generally choose a fund that has been listed for a long time. Such a fund has been running for several years, and investors can check the past performance.