Fund redemption leads to short positions? Why don't many people understand some operations of fund redemption? Therefore, Bian Xiao specially arranged the fund redemption for everyone, hoping to help everyone to some extent.
Fund redemption leads to short positions.
Fund redemption means that investors sell their fund shares in order to get back the corresponding funds. When investors collectively redeem a large number of fund shares, it may lead to the risk of short positions of fund managers.
The following is the general operation process of fund redemption:
Apply for redemption: Investors can submit redemption applications through fund sales organizations, online trading platforms or fund companies such as official website. Usually, investors need to fill in the corresponding redemption form and provide the necessary identity information.
Confirm the redemption price: after receiving the redemption application, the fund company will calculate the redemption share price according to the net value of the fund. Under normal circumstances, the redemption price of the fund will be calculated according to the net value of the fund share and the redemption rate.
Handling redemption requests: The fund company handles redemption requests in the order of investors, and sells a corresponding number of investment targets from the fund assets to meet the redemption demand.
Redemption money: the fund company will pay the redemption money to investors in time. The specific payment method can be bank transfer or check.
It should be noted that the operation of fund redemption may involve certain time and expenses. The specific situation depends on the provisions of the fund company and the terms of the fund contract. In addition, when investors collectively redeem a large number of fund shares, it may bring pressure to fund managers to sell positions to meet the redemption demand, especially in the case of low market liquidity, which may have an impact on fund performance and investor income.
Fund redemption skills
Funds can be divided into broad sense and narrow sense. Broadly speaking, a fund refers to a certain amount of funds set up for a certain purpose. The following are the fund redemption skills brought by yjbys Bian Xiao. Welcome to reading.
Exchange location:
The sales organization of the Fund includes the fund manager and the agency entrusted by the fund manager.
Fund investors shall purchase and redeem fund shares in the business premises where the sales organization handles the fund sales business or in other ways provided by the sales organization.
Exchange skills:
1. Observation before operation
Since the investment income of the investment fund comes from the future, if you want to redeem the fund, you can first look at the future development of the stock market, whether it is a bull market or a bear market, and make a choice on the timing.
If it is a bull market, it can be held for a period of time to maximize the benefits.
If it is a bear market, you can redeem it in advance and put it in your bag.
2. Switch to other products
Converting high-risk fund products into low-risk fund products is also a kind of redemption.
For example, we can convert stock funds into commodity funds.
The advantages of doing so are: not only can the cost be reduced (the conversion fee is generally lower than the redemption fee), but also the risk of the cargo base is low, equivalent to cash, and the income is higher than the current interest.
Therefore, conversion is also an idea of redemption.
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.
Practical fund trading skills
Most veterans have their own fund trading skills. Veterans have summed up their own experience through many transactions, but for many novices, they are at a loss. The novice has just stepped into the door of fund management, and he is not familiar with anything and has no practical experience. In view of this situation, Xi Cai Jun summed up some practical fund trading skills for beginners as follows:
First, we should not only learn to buy and sell funds, but also learn how to choose the right fund. When we are preparing to buy and sell funds, we should choose appropriate trading channels, because there are many trading channels for funds, including banks, fund companies, securities companies and some third-party internet trading platforms. It is worth noting that different channels may have different transaction costs, some higher and some lower. We can reduce our transaction costs by comparing and choosing channels with lower transaction costs. When choosing a fund, we also need to know the difference between different types of funds, whether the investment direction of the fund conforms to your judgment on the market prospect, and whether you choose to hold it for a long time or for a short time. For example, there is a certain difference between fund A and fund C. Fund A needs transaction fees, while fund C doesn't need transaction fees, but some service fees will be charged later. If you choose to hold it for a long time, the cost of subscribing for Fund A will be lower. Both are the same fund, the same.
Second, when buying and selling funds, we also need to know some technical skills, such as buying at the support level, selling at the pressure level, and finding the best fund trading position.
Third, we should learn to follow the trend, pay attention to the big market environment and follow the market conditions.
Fourth, when the capital investment is relatively large, you can appropriately reduce your profit line and learn to take profit and stop loss.