Is the fund facing a crisis? How much do we have to lose to reach the short position? What do you mean by explosive point? The following is how to calculate the fund explosion point compiled by Bian Xiao for everyone, hoping to help everyone to some extent.
How to calculate the short position of the fund
Position control is the most important in trading, and since we are not institutional traders, it must be emphasized that our strategy of using position control is different from that of fund or institutional traders. As a retail investor, high leverage is our sharp weapon. How to use high leverage correctly, that is, to control the nature of positions, blindly low positions or Man Cang operations will be a waste of resources.
Before today's lecture, please remember that the real leverage is completely different from the account leverage. The real leverage is the funds used divided by the balance (100 USD for operation 1 hand, that is, 100 USD for operation 100 USD, so the real leverage is 10 times).
The leverage of the account only affects the margin, so if the position is broken, the leverage of the account will affect the remaining margin more.
Calculate the explosion point of a single order
After studying all the previous calculations, the first thing we have to do is to master our current positions, which is the biggest market fluctuation I can bear. The formula is loss +50% margin = balance.
Take the current European and American prices as an example, 1 0,000 USD, and the current price is 1.13,280/91,assuming 400 times leverage,1hand transaction.
Buy 1 lot, (1. 1329 1_ short price) x65438+ million = x 100000 _ 50% x? 65438+100000/400/1.13291,and the known short price is 1.03390. That is to say, when the market price becomes 1.03379/90, the position of 1 hand will be leveled, resulting in a loss of $9,889, and the principal is only 1 10.
Sell 1 lot, (short price _ 1. 13280)x 65438+ million = 10000_50%x? 65438+100000/400/1.13280, and the known short price is 1.23 180. That is to say, when the market price becomes 1 .23180/91,the position of1hand will be shorted, resulting in a loss of $9,890, and the principal will only be 1 10.
Analysis:
The real leverage here is 10 times, so generally speaking, the risk of trading 1 hand with 100 dollars is very low, and there is a lot of room for operation. Because the market is constantly fluctuating, historical records show that it will take at least half a year or even longer for European and American currency pairs to reach 1000. But please remember that increasing the number of hands will also increase the leverage used and the risk will increase.
Without the risk of short positions, the trading method is basically the same as that of stocks, which can be held for a long time, waiting for the market to rebound. After considering the overnight interest cost, it is normal to ensure no loss, or after the market trend changes, you can add positions and make up for your losses by making profits in better positions. Since this is a topic of trading skills and strategies, I won't discuss it much today.
In short, it is a long-term solution to predict the risk of market price explosion after knowing your own price explosion and adopt your own trading strategy accordingly.
Factors affecting short positions of funds
1. Market risk
Market risk is one of the most important factors leading to short positions in funds. In the case of bad market conditions, many investors will choose to redeem their fund shares, which leads to the need for fund managers to sell their own assets to meet the redemption demand. However, in the case of bad market conditions, these assets may not be realized quickly, resulting in a further decline in the fund's net value.
2. Leverage risk
Leveraged trading refers to investors trading by borrowing funds. In leveraged trading, even if the market fluctuation is small, it may cause great losses. Therefore, investors need to be very cautious when conducting leveraged transactions.
The concept of fund explosion
For funds, "explosion" is not a formal term. However, we can understand that when the net value of the fund falls to a certain extent, the losses of investors have exceeded their affordability and they have to choose to redeem the fund shares. When the redemption amount is too large, fund managers need to sell their assets to meet the redemption demand, but if the market is not good, these assets may not be realized quickly. At this time, the fund may face liquidity risk, which in turn leads to a further decline in the fund's net value.
What is a short position?
Before understanding the fund's short position, let's first understand what "short position" means. Simply put, short position refers to the phenomenon that investors are forced to close their positions because of insufficient funds in leveraged trading. In the stock market, we often hear the concept of "short selling", that is, investors can borrow shares and sell them to get profits. However, if the share price goes up, investors need to buy more shares to repay the lender. At this time, if the funds in the account are not enough to buy more stocks, they will be forced to close their positions. This situation is called "explosion".
Influence of fund explosion on investors
1, it will lose money. When the fund explodes, the equity in the investor's margin account is negative, indicating that the fund will lose money when it explodes.
2. There is no remedy. When the position is short, the system will force the liquidation, the fund can't cope with the redemption, and the investor needs to bear all the losses.
But in general, the probability of fund explosion is very small. When buying funds, investors should pay attention to the historical performance and operation of funds and avoid buying funds that may explode.
If the investment fund is currently in a loss state, but there is a rebound trend in the future, then investors can consider making up their positions appropriately and increasing their investment. This applies to fund products with excellent historical performance and good management. On the other hand, if investors don't want to take high risks, it is recommended to choose low-risk funds from the beginning.
So is it possible for the fund to lose negative money? If the fund does not operate well and continues to decline, it will be liquidated after meeting some conditions, so the probability of negative losses is very low and it is basically difficult to happen. According to relevant regulations, if the net asset value of the fund is less than 50 million yuan for 60 consecutive days, it can be liquidated.