What is Liquidation and Liquidation? What is closed, short, liquidated, and cross

What does Liquidation and Liquidation mean?

Liquidation: Liquidation involves margin trading, when the investor's margin is not enough to offset the loss caused by the ** fluctuation, the exchange will force the investor to liquidate, which is what we often call liquidation. For example, if an investor opens a contract with a contract value of $100,000 and pays $5,000 to open a position, the contract will be liquidated by the exchange when the contract loss reaches $5,000.

Closing a position: that is, a position is closed through a reverse trade of one lot, which can be either a take profit or a stop loss.

In fact, liquidation itself is a type of liquidation, but liquidation is enforced by the exchange. In addition, liquidation must mean a loss, and closing a position can be both a profit and a loss, when the ** is unfavorable, the loss caused by the liquidation is greater than the loss of the investor's voluntary liquidation.

Many ** friends don't know about liquidation and liquidation, so what is liquidation and liquidation?

1. Liquidation: Liquidation is a general term for the behavior of the bulls selling the bought goods or buying back the sold ones in the trading process. Long sell**, short ****, the intention is to earn the spread income, see the advantage** timely closing position, to complete the spread of income, or to prevent the formation of losses when the reversal is very important.

Closing a position is a term derived from the purchase and sale of a product, which refers to the transaction carried out by the party to the purchase and sale in order to offset the contract that was previously bought or sold. In the trading of products, the analysis of the combination of volume, volume and open interest is considered to be an important target for guessing the trend. The total amount of the short sold but not covered is called the short selling amount, also known as the uncovered short selling difference.

The theory of skill analysis believes that the short sale amount is a signal of market weakness, that is, how many investors think that **** is about to fall. Short selling has expanded, and there are many people who indicate that they expect the stock price to fall. However, all short sales must be flattened by practical purchases**, so the huge short sales amount is considered to be a harbinger of rising stock prices, which is theoretically known as the air cushion theory.

Short cover is seen as a sign of market strength. If the stock price starts to rise sharply, and the short seller is forced to buy ** to close the position and prevent losses, there will be a short run, causing the stock price to continue to rise, increasing the losses of the short seller who did not close the position. In recent years, there has been a relative reduction in short selling and catch-in buying and selling around the world for speculative intent, and the link between short selling and stock price movement is no longer as tight.

2. Liquidation: Liquidation refers to the situation that under certain special conditions, the customer's equity in the investor's margin account is negative. Liquidation is when the loss is greater than the margin in your account. The remaining funds after the liquidation of the company are the total funds minus your losses, and there is generally a part left.

When there is a big change in the market, if the vast majority of the funds in the investor's margin account are occupied by the buying and selling margin, and the buying and selling direction is opposite to the market trend, it is easy to liquidate the position because of the leverage effect of margin trading. If the liquidation results in a shortfall and is caused by investors, investors will make up the shortfall in demand, otherwise they will face legal recourse.

Experts have shown that liquidation is mostly related to improper fund management. In order to prevent the occurrence of this situation, it is necessary to control the position in particular, manage funds reasonably, and avoid full position operations that may be presented in ** trading; And unlike buying and selling, it is necessary for investors to keep an eye on the stock index in a timely manner. As a result, stock indices** are not suitable for all investors in practice.

Close the position. Closing a position is the act of investors taking profit or stopping losses in time and choosing to clear their positions.

Liquidation: Liquidation is the margin of the investor's account.

It is zero or even negative, but it is too late to add margin and is forcibly closed, and the behavior of holding ** is not voluntary for investors.

Liquidation: Liquidation is relative to account equity. Liquidation refers to the risk situation that the customer's equity in the account is negative, that is, the investor not only loses all the money in his account, but also owes money to the company.

Cross: Cross is to use all the money in the investment account to **.

Extended Information: The basic terms are as follows:

1. Bull market: ** market.

Also known as a bullish market.

Refers to the general bullish market in the market, which lasts for a long time. There are more people in the market than sellers, and bullishness is called a bull market.

2. Bear market: the opposite of a bull market. It refers to the situation that the market is sluggish, the trading is shrinking, and the index is all the way. There are more sellers than bears in the market, and bearishness is called a bear market.

3. Opening price: refers to a certain **in**exchange.

For the first transaction of each business day, the transaction price of the first transaction is the opening price of the day.

4. ** price.

Refers to the execution of the last trade before the end of a day's trading activity on an exchange.

5. Wash dishes. Speculators first kill the stock price sharply, so that a large number of small ** investors (**) panic and sell**, and then raise the stock price in order to take advantage of the profit.

6. Pullback: On the first day, the stock price is constantly trending, and finally the stock price is reversed and falls back to a certain price due to the speed of the stock price, which is called a pullback.

7. **: On **, the stock price is constantly trending, and the adjustment phenomenon that finally reverses and rises back to a certain price due to the rapid speed of the stock price is called **.

8. Short buying: The investor's stock price will be **, but he has his own funds.

Limited can not buy a large amount of **, so pay part of the margin first, and through the broker to the bank financing to buy **, when the stock price ** to a certain price, then sell, in order to obtain the difference income.

9. Short selling: The investor ****** will, so he pays the collateral to the broker and borrows the first to sell. Wait for the stock price to reach a certain price before buying, and then return the borrowed**, and get the difference from it.

10. Lock-in: refers to the transaction risk encountered when conducting ** trading. For example, investors expect that the stock price will be **, but the stock price has been trending after buying, this phenomenon is called bullish lock-in.

On the contrary, investors expect that the stock price will be **, and will sell the borrowed **, but the stock price has been **, this phenomenon is called short lock-in.

Closing a position is to sell the underlying asset, and losing a position is to lose all the money.

Liquidation means that the loss is serious and the position is forced to close.

The whole warehouse is **full.

In layman's terms, liquidation is to take the initiative to understand the position, while liquidation is the liquidation of the account risk is too large, and the company carries out the liquidation.

Hello, closing a position is corresponding to the opening of a position, ** an opening and a closing is a complete transaction, and the opening and closing of positions are completed by the trader himself.

If you blow up, it means that at the extreme time, the risk of the account exceeds the standard, and you owe money to the exchange, and the exchange will definitely not agree.

Liquidation refers to the situation where the loss exceeds the margin and the account return is negative in margin trading. This is usually the result of investors adding to their holdings** and significant changes in the market and not taking action. The market takes place in margin trading and stock index trading.

When the market is bullish, the market **, leading to trading mistakes. If there is no stop loss, the position will occur.

Liquidation refers to the situation where the client's equity in the investor's margin account is negative under certain special circumstances. Generally speaking, the open interest** means that the investor's loss is greater than the margin on the personal account. Generally, after the mandatory closure of a company, the remaining capital is the total capital minus losses, and usually a portion of the surplus.

There is another explanation for liquidation, which means that the leverage **** reaches a critical point and is forced to close by the platform. Forced closure refers to the company helping investors to dispose of listed companies with market **.

Usually, only when there is a significant change in the market situation, the vast majority of the funds in the investor's margin account are occupied by the trading margin, and the trading direction is opposite to the market trend, due to the leverage effect of margin trading, it is easy to break through. For example, due to excessive weight, the ability to resist risks becomes poor; Another example is that if the market changes too quickly, investors do not have time to increase their margin, which will lead to liquidation.

Once the warehouse happens, the consequences are still severe. If **** causes a loss, and the **** loss is caused by the investor himself, the investor must make up for the loss, otherwise he will face legal recourse. The occurrence of liquidation is closely related to adverse market movements.

If we don't set a stop loss in advance before trading, it's easy to delay losses due to untimely response to risk. If we strictly stop losing money, even if we encounter a sudden reversal of the market, we can quickly leave the market at the first time with minimal losses and keep the account funds to the maximum. Therefore, the investment market can be said to be a very serious loss situation.

Once the **** happens, it basically means that the investor can only regret the exit. Therefore, in daily financial management, we must make full use of the two major skills of light trading and limiting stop loss to effectively reduce market risks, reduce the possibility of market loss, and achieve stable market profits.

Liquidation, a professional term, refers to the situation where the client's equity in the investor's margin account is negative under certain special conditions, and the loss is greater than the margin in the account. The remaining funds after the liquidation of the company are the total funds minus your losses, and there is generally a part left. It is often used in spot and ** transactions.

This means that if you lose too much, you may lose your margin, and you can continue to add margin or wait to close your position.

This means that under certain conditions, the customer's equity may be negative. And you may lose more than your margin.

Liquidation refers to the situation where the client's equity in the investor's margin account is negative under certain special conditions. No matter what, the market will never allow you to pass without paying tuition. So how to deal with liquidation, how to face the drawdown of trading?

1. Suspend trading and take a breakBy pausing trading at this time, your emotions will calm down more quickly so that you can concentrate on solving the problems that have arisen. While the suspension time depends on the individual, it is best to have no less than one trading week. Anything shorter than that, your risk of re-experiencing an unpleasant experience increases dramatically.

During the week when you don't trade or look at charts, you can spend more time with your family and do what you want.

2. Review transactions and diagnose problems3. Learn to control, everything is halvedAfter a period of pause, most people recognize their mistake and cut everything in half. Then you have to decide whether to deposit money in a new live account or if you should go back to demo trading. There is no definitive answer, though.

Reflect on yourself in the liquidation, summarize the problems, and start again.

Opening a position, also known as opening a position, refers to the trader's new or new sale of a certain number of contracts. Liquidation refers to the transaction behavior carried out by the buying and selling party to offset the previously bought or sold ** contract; Closing a position is a general term for the behavior of a long position to sell what was bought, or a short position to buy back what was sold.

Closing a position and opening a position and liquidating are the terms of the long and short two-way trading market, closing the position is to say that the single in your hand is to sell, because it is a long and short two-way trading system, so you may have a short single can also make a long single, so generally do not say sell; Opening a position is the opposite of closing a position, that is, a list, and this list may also be a long order or a short order, so it is generally not said; Since the long and short two-way trading market is a margin trading system, when your account risk is less than 100%, there is a risk of liquidation, and the general risk is less than 50% will be liquidated, forced to close all the orders in hand, for example, you have 100,000 in your account, you buy a single with 50,000, when you lose money, the first loss is the remaining 50,000 yuan, when the remaining 50,000 in your account is all lost, your list in your hand begins to lose, at this time your risk is 100%, When you have a loss of the order in your hand, it will be forced to liquidate, and the 100,000 in your account will be left.

What is Liquidation and Liquidation? The difference between closing a position and a liquidation position.

Normally, allocations mainly charge interest, and there are even interest-free ones, of course, there is a time limit.

The block returns to its position closer to itself. The author mainly examines the precept of eating meat, and at that time there were three pure meats and five pure meats.

If it is the first time for a newcomer to allocate funds, it is recommended to allocate less and slowly accumulate experience.

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