What are edge lines and peace lines? -Baidu knows.

The so-called liquidation line means that if you continue to lose money, you will lose the borrowed money, but the borrowed money is not allowed to lose money. Therefore, at this time, all the current operations are settled through forced liquidation trading (reverse trading), and then the borrowed money or coupons are returned. The margin line is to warn you before closing the position that you will soon lose money. Either add more money to the account (make up the position), or close the position yourself quickly, or you will be forced. Welcome to click for details.

Generally speaking, for ordinary investors, reaching the liquidation line means that the guarantee ratio of securities accounts has fallen below the liquidation line of margin financing and securities lending-currently, it is generally 130%. Once this situation is triggered, there will be a position explosion-forced liquidation by brokers. In this case, if investors don't want the position to explode, they have only two choices:

First, actively sell some stocks on the day of short positions, including stocks used as guarantees and stocks bought by financing, in order to increase the proportion of financing guarantees in securities accounts. Judging from the guarantee function and data, the cash guarantee ratio is higher than that of stocks. Selling some stocks will help increase the proportion of financing guarantee in securities accounts. At the very least, the margin guarantee ratio of securities accounts should rise to above 1.30%, preferably above the warning line of 1.50%.

Second, take the initiative to cover positions, transfer cash to securities accounts, and increase the financing guarantee ratio of securities accounts. Generally, brokers will require the capital injection to be completed before 9: 00 a.m. the next day after the margin trading account explodes, otherwise the brokers will start compulsory liquidation.

It is worth noting that a few days ago, the CSRC announced that it planned to cancel the compulsory liquidation line of margin financing and securities lending 130%, which was negotiated by brokers and customers themselves, but there was no news that brokers followed up.

Want to know more about margin trading, I recommend consulting Guo Jin Securities. Guo Jin Securities has always been adhering to the integrity, integrity and professionalism to provide reliable financial services to customers; At the same time, professional investment consultants also rely on the consulting service products created by the three major financial research institutes in China to solve the investment problems of customers.