Is there a difference between margin call, position increase, and what does position addition and ma

Updated on Financial 2024-02-29
8 answers
  1. Anonymous users2024-02-06

    Hello, adding to a position is an investment trading technique. It refers to the fact that the investor himself holds a **, and then this **** appears**or**, and the investor is optimistic about this **** and increases the position, which is an active investment strategy.

    Margin call is also an investment trading technique. It refers to the fact that the investor himself holds a certain **, and then the **** appears, resulting in the investor's ****, at this time, the investor increases the **** behavior in order to lower the cost of the ****, which is a passive investment strategy.

    The difference between adding positions and covering positions is that one is an active investment strategy that is optimistic about the investors' own holdings, so as to increase them in order to obtain greater returns and profits. On the contrary, one is to increase the position of the investor himself, so as to amortize the cost of holding the position.

    Normally, the margin call is the pursuit of ****, and the difficulty will be greater than that of **** continuously or again after a small adjustment. Therefore, the strategy of adding positions is more variable, while the strategy of margin replenishment is less variable.

    Risk Disclosure: This information does not constitute any investment advice, and investors should not use such information to replace their independent judgment or make decisions based solely on such information, does not constitute any buying and selling operations, and does not guarantee any returns. If you are doing it yourself, please pay attention to ** control and risk control.

  2. Anonymous users2024-02-05

    Margin call is the behavior of the stock price in order to reduce the cost of the stock price. Margin call is a passive response strategy after the first prison, it is not a good way to untie the hedge, but it is the most appropriate method in some specific situations.

    Increasing position refers to the behavior of continuing to be optimistic about a certain ** and continuing to add ** in the process of falling or rising the ****.

  3. Anonymous users2024-02-04

    1. Different definitions: Increasing positions is because you are optimistic about a certain **, and continue to add ** in the process of the stock price change. Margin call refers to the behavior of an investor holding a certain **, but the ******, the investor continues to ** in order to share the cost of the **.

    Second, the purpose is different: the purpose of adding a position is to obtain greater profits, and the purpose of a margin call is to untie the position, that is, to stop loss or make a small profit, although the margin call is not a very effective means of unwinding.

    Third, the purchase of ** is different: the ** purchased by the additional position is a blue chip stock, while the ** purchased by the top position is only the ** of the **. Blue chips are companies with excellent performance, strong competitiveness, high market share and great popularity.

    Blue-chip companies often have the ability to maintain the growth of large market capitalization on a stable basis, which is actually equivalent to convertible bonds, with strong resistance to declines and space.

    The purpose of margin call is to reduce costs, or to increase returns, and most importantly, to ensure safety, and to increase positions to create greater returns. Whether it is to add or cover a position, you need to pay attention to skills. Investors should master more knowledge, improve their investment quality, and do not blindly follow the trend of speculation.

  4. Anonymous users2024-02-03

    1. What does it mean to add and cover positions.

    1.Increasing positions is based on the original shares, and then the blue chip stocks, blue chips are companies with excellent performance, strong competitiveness, high market share and great popularity. Reducing positions is the act of selling ** in the process of **** rising.

    Adding or decreasing positions is the act of buying and selling within your buying power.

    2.Margin replenishment is because the stock price ****, in order to reduce the cost of holding, and the ** behavior, is a passive response strategy after the ** prison, but it is not a good solution itself, but it is the most suitable method in some specific situations. Because although it can dilute the cost price, it is difficult to predict, and it may continue after the margin call, which will expand the loss.

    2. What are the operating skills and precautions in the process of margin replenishment?

    1) To judge what ** is worth making up and what kind of ** is not worth making up the position;

    2) In the bull market, the weak stocks do not make up, because which ** rises it does not rise, ** it follows the **weak**, it is not suitable to make up the position;

    3) Pay attention to the timing of the replenishment, we must pay attention to the internal trend of **, the most suitable time to replenish the position There are two types: one is the turning period of the bear bull, when the stock price is extremely sluggish; Second, in the trend of **, the trend of buying margin cover is more obvious**.

    4) You don't have to buy your own ** to cover the position. The key is to make up for the maximum profit, in most cases, to buy their own holdings because the stock is more familiar, the probability of profit will naturally be large.

    5) The amount of margin call, depending on whether the investor is based on medium and long-term operations or ** operations, the number of ** operations that can be bought ** is equal to the amount originally held, and must be the same** so that it is convenient to sell, and medium and long-term operations, there is no limit on the number and variety of margin calls.

    6) Strive to make up the position at one time, try not to make up the position in stages, and make up the position step by step, because the investor's funds are limited, no matter how many times it is flattened, the margin call is to pay for the previous imprudent behavior.

  5. Anonymous users2024-02-02

    Some novices will always confuse adding and replenishing positions at the beginning, but in fact, there is a certain difference between the two. So, what is the difference between adding and covering positions?

    The difference between adding and covering positions is actually mainly active and passive:

    The so-called "increase position" is to **this** on the basis of the original stock. It is a behavior that continues to be optimistic about a certain **, and continues to add ** in the process of falling or rising.

    The "margin call" refers to the ** behavior carried out in order to reduce the cost of the ** due to the stock price. That is, on the basis of holding a certain number of certain **, the investor has the same **.

    Therefore, to put it simply, adding a position is an investment technique, and covering a position is a passive strategy adopted after being imprisoned. In other words, adding to a position is an active behavior, while margin calling is a passive behavior. Although both of them belong to the behavior of **, the premise of their occurrence is different.

  6. Anonymous users2024-02-01

    The increase is based on the purchase of the blue chip stock in the original stock. Blue chips refer to companies with good performance, strong competitiveness, high market share, and high popularity. Adding or decreasing a position is the act of buying or selling** within your buying power.

    Cover-up refers to the fact that an investor buys the same kind on the basis of holding a certain amount of **.

    A margin call is a purchase that lowers the stock price due to the stock price. This is not a good way to solve problems, but it is the most appropriate way to solve problems in some specific situations. Buying the stock at a lower ** will reduce the unit cost, and it is expected that after replenishing the warehouse, the profit from the repurchase of the replenishment warehouse will make up for the loss.

    Although a margin call can dilute the cost price, it is difficult to do so, and it may continue after the margin call, which will magnify the loss. ** is a means that we often use in practice, not to reduce costs, but to increase revenue, and of course, the most important thing is to ensure safety. Replenishment of funds falls under the umbrella of strategies for the use of funds.

    Therefore, it is necessary to pay attention to the technology, when to replenish the warehouse, what kind of **.

  7. Anonymous users2024-01-31

    1. The meaning is different: when the position is opened, the purchase of the position rises, and the position is subscribed again, because the stock is constantly fancied, therefore, the purchase is increased again. The margin call is the act of buying the securities when the securities bought fall in order to better stop loss and reduce the cost of the securities;

    2. The purpose is different: the increase is because of the expansion profit, and the replenishment is for better stop loss. In addition, the reason for adding a position is that this security can increase again, so buy and own this security again.

    The margin call is not to fancy this stock, but to feel that this ** has an opportunity to rise in the short term, therefore, the margin call is used for ** stop loss.

    1. "Increasing positions" is to buy this ** on the basis of the original stock, because it is a behavior of constantly paying attention to a certain **, and increasing the purchase again in the process of reducing or ** over-footing;

    2. "Margin call" refers to the act of buying because the ****** is covered, so in order to better reduce the cost of the **. That is, the investor buys the same ** on the basis of having a certain number of **.

    To put it simply, adding a position is an investment method, and covering a position is a passive response to the implementation of the ****. In other words, adding to a position is an active behavior, while covering a position is a passive behavior. Although both are acts of buying, the precondition for them is not the same.

  8. Anonymous users2024-01-30

    Opening a position refers to the act of investors judging that the stock price is going to be in an uproar and buying.

    Replenishing the position is because of the stock price, in order to reduce the cost of the hail concession of the stock.

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