5 thoughts on “What does it mean to burst out of position?”

  1. Blasting is a deposit that losses is greater than in your account. The remaining funds after the company's Qiangping are the total funds that minus losses, and there are generally part of the remaining part.

    This: Usually after overdraft investment, the loss exceeds its own funds.

    has two situations in the position of bursting positions. One situation means that after the futures customer liquidates, it also owes the futures exchange of the futures, that is, the account floating profit loss ≥ total account funds, that is, customer rights and interests ≤0

    Due to the rapid changes in the market, when investors have not had time to add margin, the deposit on the account can no longer maintain the original contract. The result of the "zero" of margin is commonly known as "burst warehouse" and the meaning of "piercing warehouses" is the same as "burst warehouse".

    The liquidation refers to futures traders who are buying or sold as the variety, quantity, quantity and delivery month they hold. "The original buy is sold, and the original selling (short -selling) can be bought."

    Classification of the liquidation:

    hedge:

    The hedging liquidation is a futures contract for futures investment enterprises through the same futures exchange of the same delivery month to use the futures contracts that were previously sold or bought.

    Forced:

    Forced liquidation is a third party (futures exchange or futures brokerage company) other than holders of the position holder, forcibly the position of the holder of the position holder, Also known as being cut or cut.

    The reasons for forcibly liquidation in futures transactions, such as illegal behaviors such as increasing transaction margin in time, violation of transaction position restrictions, and temporary changes in policy or trading rules. In the standardized futures market, the most common is the forced liquidation due to insufficient customer transaction margin.

    specifically, it means that the transaction margin required to hold the contract in the customer's holding contract is insufficient, and it fails to add the corresponding deposit or actively reduce the position in accordance with the notification of the futures company, and the market conditions are still unfavorable to hold the position. During the development of the direction, the futures company forcibly calmed down the customer part or all positions to avoid losses, and fill the deposit gap to fill the deposit gap.

  2. Warehouse is a deposit that losses is greater than in your account. The remaining funds after the company's Qiangping are the total funds that minus your losses, and there are generally part of the remaining part. The so -called burst refers to the situation where the customer's equity in the investor's deposit account is negative under certain special conditions. When the market conditions have changed significantly, if most of the funds in the investor margin account are occupied by the transaction margin, and the direction of the transaction is the opposite of the market trend, due to the leverage effect of margin transactions, it is easy to have explosive positions
    refers to the futures contract of buying or selling futures traders as the variety, quantity, quantity and delivery month that they hold. Just sell it, originally sold (short -selling) and buy it. "

  3. This problem is very heavy. Blasting positions are usually caused by heavy positions or without stop loss. The root cause is that the essence of margin transactions is not understood. The margin transaction can only be right. If it is wrong, it must stop the loss. Otherwise, it is only a matter of time. The liquidation is very simple. For example, the list in your hand makes money, you make a profit, this is the liquidation. If you have any questions, you can ask me.

  4. The liquidation refers to the buying operation held in the hand and selling the multi -position.
    This is the available funds after the loss is greater than the margin that is greater than your account. The remaining funds after the company's Qiangping are the total funds that minus your losses, and there are generally part of the remaining part.

  5. Blasting positions are the upper limit of your resources to the capacity of the warehouse and can no longer be produced. The clearance is to allocate the amount of your various materials to other resources except 4 after 4

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