I believe that people who have just entered the stock market have heard of the word "explosion", but what does this word mean? Are there any other related nouns? The following is the significance of the stock exchange explosion brought by Bian Xiao. I hope you like it.

What is the meaning of stock foreign exchange explosion?

Short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances.

A short position means that the loss is greater than the margin in your account. After the company is forced to draw a tie, the remaining funds are the total funds MINUS your losses, and generally there will be a part left.

When the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading. If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse.

There are generally several situations in which a warehouse outbreak will occur.

1, frequent heavy positions: This situation is generally caused by traders' quick success and instant benefit. Can take light warehouse operation, fewer times, risk sharing, can effectively avoid warehouse explosion.

2. Obsession: Due to personal personality reasons, many traders did not close their positions in time at dangerous times, but took chances and knew that there were tigers in the mountains.

3. No Stop Loss: If no stop loss point is set before the transaction or the stop loss operation is not strictly implemented during the transaction, there is the possibility of short positions. This is also a cliche, and its importance is self-evident. You can also combine stop loss with position management and use technical conditions to stop loss.

4. intraday trading: I think that with the idea of making a profit or winning back a loss, I will operate at will when I see possible trading opportunities, so that the probability of encountering a crisis will greatly increase and the possibility of short positions will always increase.

What do you mean by foreign exchange explosion?

What does the foreign exchange explosion mean? To understand this problem, investors must have a certain understanding of the margin in foreign exchange transactions.

Foreign exchange trading is also called foreign exchange margin trading. Investors should understand the concepts of occupation margin and available margin when conducting foreign exchange transactions. In foreign exchange margin trading, investors need a certain margin when opening positions, which is called occupation margin. For example, investors need to occupy a deposit of $800 to become the standard hands of Australia and the United States on the FXCM platform. The total amount of funds in the investor's foreign exchange account MINUS the occupation margin is the available margin. Still in the above example, the total amount of funds added to the investor's account is $65,438+0,000, and the available margin when going out to occupy the margin is $200. The main function of available margin is to bear the risks caused by exchange rate fluctuations during trading.

Foreign exchange short position refers to that in the process of foreign exchange trading, because of the fluctuation of exchange rate, the available margin of investors is not enough to bear the risks brought by exchange rate fluctuation, and the foreign exchange trading platform will automatically close the investors' orders, which will lead to short position. Again, in the above example, if an investor loses money when making an order, and the amount of the loss exceeds 200 US dollars, because the investor has no extra margin available to bear the risk, at this time, Fuhui will say that the investor's order will automatically close the position and finally explode the position.

There is also a certain proportion of foreign exchange shorts. When the available margin reaches this ratio, the account will be short. In one of the above examples, we take FXCM platform as an example, and the short position ratio of FXCM platform is 100%. In other words, an investor will explode only when he loses all his $200. However, the proportion of empty positions on some platforms is as high as 50%. In other words, if the loss exceeds $65,438+000, there will be short positions.