What does it mean to double the loss of the fund to cover the position? You need to consult relevant information to understand. According to many years' study experience, if you figure out what it means to double the loss of the fund to cover the position, it will make you get twice the result with half the effort. Let's share what it means to double the loss of the fund to cover the position. Relevant experience is for your reference.

What do you mean by doubling the loss of the fund to cover the position?

"Double loss fund covering positions" means: when your fund has a large loss, in order to reduce the cost, buy the remaining share, that is, "covering positions". Through this operation, the original loss may be diluted a little, but this practice may not necessarily reduce the cost, and may even make up for the loss.

What is the fund's cover position formula?

Formula for covering positions with funds: cost price after covering positions = (purchase price+covering position expenditure)/(purchase quantity+covering position quantity).

Is it still useful to cover the position with funds?

Fund covering positions plays a certain role for investors, especially long-term investors, which can reduce investment costs and diversify investment risks.

Covering positions is an investment strategy to increase positions after the fund falls. By covering positions, investors can get more shares when the fund price falls, thus reducing the average cost and diversifying risks. For long-term investors, covering positions can increase the holding period of funds and increase the holding ratio of investors, thus obtaining more investment income.

However, it should be noted that covering positions cannot solve the risk problem of fund investment itself. When covering positions, investors should fully understand and analyze the investment direction of funds and the investment ability of fund managers in order to avoid investment risks.

Therefore, the fund's cover position has a certain effect on investors, but it needs to be decided whether to use it according to the individual's investment purpose and risk tolerance.

How do closed-end funds cover their positions?

Closed-end funds can cover positions by the following methods:

1. Fixed investment method: regardless of the price of closed-end funds, make a certain amount of fixed investment every month or week and stick to it for a long time.

2. Fixed proportion method: Using fixed proportion method to invest, you can choose different proportions to invest according to your risk tolerance, such as portfolio method, which can reduce investment risks.

3. Buy and sell according to the net value of closed-end funds: buy and sell according to the net value of funds in your hands, when the net value is low, and sell when the net value is high.

4. Make-up method: After buying a closed-end fund, if the price falls, you can buy the same or similar fund again to make up the position.

It should be noted that no matter which method is adopted, you need to choose flexibly according to the market situation and your own risk tolerance.

Is it better for the fund to cover the position or close the position?

Whether it is covering positions or closing positions, it is aimed at the current fund trading strategy, and both strategies have their own advantages and disadvantages.

The advantage of covering positions is that for loss-making funds, covering positions can dilute the cost, that is, the original cost can be reduced with the new purchase price. However, if the market continues to fall, covering the position may lead to greater losses.

The advantage of liquidation is that you can sell the fund immediately and get other opportunities for cash investment. However, liquidation may cause investors to miss the subsequent market rise.

Therefore, the choice of covering positions or closing positions depends on investors' risk tolerance, investment objectives and market conditions. If the market continues to fall, it is recommended to consider stop loss or lower the position; If the market trend is good, you can consider making up or adding positions after the market rebounds.

What does it mean to double the loss of the fund to cover the position? So much for the introduction.