The term medium burst has been heard many times, but what does it really mean?
In fact, the burst position is the loss is greater than your account after the removal of the margin of the available funds, by the bank after strong balance of the remaining funds is the total capital minus your loss, generally there is still a part, so, in the end if the burst position how to do?
Experts remind: most of the explosion and improper fund management, in order to avoid the occurrence of this situation, need to control the amount of position, reasonable fund management, avoid the stock trading may appear in the full position operation;
And unlike stock trading, investors must keep track of Td’s performance.
Td if burst into four main situations, the first is the most common.
1. Liquidation reserve less than zero can be divided into two types: individuals and legal persons: for legal persons, when the available funds appear negative, a margin call will be issued (Note: this notice is a value-added service). Customers need to pay attention to their fund accounts.
When the margin is lower than the margin requirement (10%), the position will be closed out without further notice.
Individuals will be forced to unwind positions when available funds are less than or equal to zero, as detailed in the contract standards of major banks.
2. Those who are forced to liquidate positions by the exchange due to violations;
3. Forced liquidation according to emergency measures of the exchange;
4. Other situations that should be forced to liquidate positions.