wholesale antique jewelry california Ask the problem of short positioning

chanel bling wholesale jewelry What does it mean to be short?

This short position refers to the phenomenon of being forced by the broker when the market fluctuates too much when the market fluctuates too much. To make a profit through the decline in asset prices, whether it is short -term stocks or short futures, a certain deposit is required. The theoretical margin is 10%of the actual position value, so it means that the actual reverse fluctuations that investors can bear only 10%.

In terms of stocks, shorting is to borrow stocks through securities borrowing stocks and sell them. After the stock price falls, the stock will be returned to achieve profitability. The futures will directly open the bill.

In short, whether it is stock or futures, it is settled without liability. Therefore, when the market is unfavorable, the principal can not be "liability for holding". At this time, it will be at this time. Forced liquidation.

The first, the burst of positions only occur in two cases. The first is to borrow money from others to invest. This others are generally exchanges, brokers or other institutions. The second is that although there is no borrowing, it is invested in contracts, such as futures, etc., because these transaction models use a margin system, and the margin system comes with leverage. If you just invest in your own money, you will not burst, and you will never sell it.

The second, the liquidation can be understood as forced liquidation or even warehouse. Taking stocks as an example, even if the stock price fell sharply after the stock price fell sharply, as long as we did not return the market, we could not sell it, or even ten or twenty years. warehouse. However, when borrowing money stocks, because some money is not your borrowing, when the stock price continues to fall to threaten the security of the borrower's funds, it will be forced to close the position, that is, forced the stock on your hand to sell it. In extreme cases, even forced selling will still cause the borrower's money. The investor not only does not have his own capital, but also pays more money to give more money for borrowers.

Third, the Bitcoin plate dived sharply on January 4th, and the most time fell to 29000USD, which made some contractors burst out. In fact, Bitcoin's price decline is only about 10%, but people who use ten times leverage may not be able to bear it. Let me give you a few examples to explain how the burst of positions happened.

I assuming that the investor Xiao Wang fancy a stock, with 100,000 yuan of own funds, and add ten times to increase the funds to 1 million yuan. 900,000 yuan in these 1 million yuan was borrowed by the institution. Xiao Wang bought a share of 10 yuan, a total of 10,000 shares.

In after buying, assuming that the stock price fell by 8%the next day, the stock price became 9.2 yuan, and it lost 80,000 yuan for 1 million yuan. At this time, only 20,000 yuan of funds that Xiao Wang owned by 100,000 yuan is left. The stock price continues to fall, but the last 20,000 yuan may not be left, but the 900,000 yuan borrowed may Losses.

The institutional institution will ask Xiao Wang to make up for the security of his own funds, that is, to fill in some funds to fill it. If Xiao Wang has no money or is unwilling to invest in free funds, there will be a danger of bursting, and the institution will basically sell the stock directly without the consent of Xiao Wang. Suppose the final transaction price is 9.1 yuan per share, and 100,000 shares can sell 910,000 yuan in cash, of which 900,000 yuan is returned to the institution, and 10,000 yuan will be returned to Xiao Wang (ignored the cost of borrowing, in fact, Xiao Wang also a total of 10,000 yuan in a company. Can't get it, because you have to pay the interest of borrowing stocks). In a day, Xiao Wang's 100,000 yuan lost 90,000 yuan.

who are the best jewelry wholesale suppliers I consulted your question, your 2800 grams cost is 17,360 yuan, and you will close the position when your cost falls to 2508.