For many citizens, you may only know the concept of short-selling funds, so do you know how to short many times? How to short three times? The following is the triple short-selling foundation brought by Bian Xiao. I hope I can help you.
Did Sanlian short the position of the foundation?
Simply increasing the leverage of the position, the triple position will definitely explode, but the triple position will not explode when buying etf funds. Because etf funds have tripled their holdings, it is not entirely a matter of holding positions. The impact on the loss after the decline is not linear, but an exponential function, that is to say, even if the loss is more, it is only infinitely close to zero in theory, but it will not break out.
The concept of "short position" mostly appears in investments that use leveraged trading, and the most familiar ones are futures trading and capital allocation in the stock market. A broken position means that your principal (deposit) has been lost. If the deposit cannot be replenished or added in time, the account will be forced to close, and even face the consequences of compensating for additional losses. In this case, three times more means that as long as it falls by 33%, it will come out.
But in index fund trading, the concept of triple dragon is different. Different from fund allocation, tripling long ETF only magnifies the fluctuation range, not tripling the funds, that is, fund grading, which magnifies the leverage of ETF. Even if it falls to the embedded warning line of the fund, the B shares of multiple graded funds will be merged into several A shares. Assuming that positions are changed every time 1% fluctuates (actually smaller), then the stock market falls 1% every time, falling 50 times, with an absolute decline of only 39.5%.
Therefore, in most cases, we are talking about ETF index funds, especially some funds that buy and sell US stock indexes, which generally have more than three times the right to choose. Even if you choose to do it more than three times, it will undoubtedly increase the risk of funds, but the risk of short positions is almost non-existent. The same is true for triple shorting, which corresponds to triple shorting, because the external disk supports two-way trading.
Can triple shorting be held for a long time?
Triple shorting cannot be held for a long time. Triple shorting refers to investors shorting a target with a leverage ratio of 300%. Triple shorting is more common in futures trading and foreign exchange trading markets, which allows investors to buy more subject matter with few assets and triple their profits.
At the same time, the hidden dangers of investors have also increased by three times, which is very prone to short positions, that is, when the subject matter and investors buy in the opposite market, when it reaches 34%, there will be short positions. Therefore, triple short positions cannot be held for a long time.
Therefore, investors should take advantage of the trend when operating leveraged stock trading, that is, take long positions in the rising link and short positions in the falling link; Effectively manipulate positions, it is best to buy in a light warehouse; Set profit stop loss and profit stop position, that is, track and check the changes of market conditions as soon as possible. When the market trend changes in the opposite direction, the stop loss will be eliminated immediately, not just held.
If investors want to make long-term profits, it is best to follow the trend, operate effectively, set up preventive measures to stop profit and stop loss, and closely follow and observe the current market conditions and improvise.
What do you mean three short and three long?
Triple shorting refers to investors shorting a target with a leverage ratio of 300%. On the contrary, tripling long refers to investors shorting a target with a leverage ratio of 300%. Triple short and triple long are generally common in futures and foreign exchange markets.
Triple short and triple long, which enables investors to buy more subjects with less money, triple investors' income and triple investors' risk.
For example, when the target purchased by investors falls by 10%, short investors will achieve a 30% yield under the action of triple leverage. When the subject matter purchased by investors rises by 10%, short investors will lose 30% under the action of triple leverage. When the loss rate of investors reaches 100%, there will be short positions.
Generally speaking, the higher the leverage ratio, the greater the risk. Investors should reasonably control their positions in the trading process to avoid exposure.
What is long and short?
Going long means that investors believe that stocks have room to rise, buy in advance before rising, sell after rising, and earn the difference by buying low and selling high.
Short selling is the opposite of long selling. Short selling means that investors think that the stock may fall in the afternoon, first sell the stock in the current market, then buy it back with less money after the stock falls, and make a profit by selling at a high level and buying at a low level.
What if the fund doesn't know how to choose?
For beginners, it is really not clear how to choose a fund. Now Bian Xiao tells you that if you don't know to look at the fund rankings first, consider the top 25 funds first. The top rankings are generally in recent months. History performs better.
For short-term investors, they can also choose new funds in combination with market hotspots, that is, they can choose new funds in market hotspots. If you don't know, you can consult your friends who are fund experts. Maybe they will tell you.