The hit drama "Flowers" came to a successful conclusion, and the most burning ending was the ** defense battle in Shanghai, the game between Mr. Bao, Mr. Qiang, and the Kirin Club. Foreign netizens are already waiting for English subtitles, and there are a lot of ** jargon "closing", "heavy position", "forced liquidation", "closing line" and "warning line" How to translate?
What is "Closing a Position"?What is "heavy position"?
"Close position" and "heavy position" are common terms.
"Closing a position" is when an investor closes his or her open trading position. In practice, this means that if an investor has previously held a long position on an asset, they will close the position by selling the same amount of that asset;Conversely, if they sell short (i.e. hold a short position) on an asset, they close the position by the same amount of the asset. The purpose of closing a position is usually to achieve a profit, or to reduce losses.
"Heavy position" refers to the fact that the investor has invested a large proportion of funds in a specific ** or market, and the ** share accounts for more than **. When an investor has a high proportion of an asset in their portfolio, it can be said that the investor is "heavy" in that asset. Such a strategy may result in higher returns due to concentrated investments, but it also carries a higher level of risk because the performance of the portfolio is overly dependent on a few assets.
The opposite of "heavy position" is "light position", which refers to the fact that compared with **, the share of funds accounts for more.
In English, "close position" is often expressed as close position, "heavy position" can be translated as overweight (investing), and "light position" is often expressed as underweight.
closing a positionrefers to executing a security transaction that is the exact opposite of an open position, thereby nullifying it and eliminating the initial exposure. closing a long position in a security would entail selling it, while closing a short position in a security would involve buying it back. taking offsetting positions in swaps is also very common to eliminate exposure prior to maturity.
anoverweight investmentis an asset or industry sector that comprises a higher-than-normal percentage of a portfolio or an index. an investor might choose to devote a greater portion of the portfolio to a sector that seems particularly promising, or an investor might go overweight on defensive stocks and bonds at a time when prices are volatile.
underweightrefers to one of two situations in regard to trading and finance. an underweight portfolio does not hold a sufficient amount of a particular security when compared to the weight of that security held in the underlying benchmark portfolio. underweight can also refer to an analyst's opinion regarding the future performance of a security in scenarios where it is expected to underperform.
What is "Forced Liquidation"?
"Forced liquidation" is also known as "forced liquidation", also known as "liquidation", "liquidation" and "liquidation".It refers to the situation that under certain special conditions, the customer equity in the investor's margin account is negative. Liquidation is when the loss is greater than the margin in your account. The remaining funds after the liquidation of the company are the total funds minus your losses, and there is generally a part left.
In simple terms, when the funds in an investor's margin account fall below the required minimum margin level, the brokerage firm will automatically sell or close the position held by the investor to reduce risk and potential losses.
In English, this concept is called:"margin call"or"forced liquidation"
amargin calloccurs when the percentage of an investor’s equity in a margin account falls below the broker’s required amount. an investor’s margin account contains securities bought with a combination of the investor’s own money and money borrowed from the investor’s broker.
forced selling or forced liquidationusually entails the involuntary sale of assets or securities to create liquidity in the event of an uncontrollable or unforeseen situation. forced selling is normally carried out in reaction to an economic event, personal life change, company regulation, or legal order.
What are the "warning lines" and "closing lines"?
In **,"Cordon".is a term related to margin trading. It refers to the value of the amount held by an investor in a margin account to a certain level that is below a certain percentage of the initial margin requirement, but has not yet reached the level of liquidation of the position. This level is set by the broker in accordance with regulations and protocols to alert investors that their account funding level is close to the danger zone and additional funds may be required to maintain existing positions and prevent forced liquidation.
Put simply, a warning line is a risk control indicator that investors should be alert and take action when the value of an account drops to near the margin requirement. This is to prevent further liquidation of the account. If the account value continues**, hitting the so-called "close-out line" or "margin call", investors may receive a liquidation notice requiring them to deposit more funds or sell part of their position to meet the minimum margin requirement.
"Closing Line".Refers to the margin account, when the equity of the account falls to a certain level, according to the requirements of the broker must be closed out of the boundary. If the account value continues**, reaching this line, the investor needs to act immediately, either by making a margin call to maintain the position, or by liquidating some or all of the position to reduce the loss.
This level is usually below the "warning line" and is a safety valve set up by the broker to protect its own interests (to prevent the client from losing more than his account funds and affecting the broker's funds).
The English expression for "cordon" is usually maintenancemarginThe English expression for "liquidation line" is usually liquidation level.
maintenance marginis the minimum equity an investor must hold in the margin account after the purchase has been made; it is currently set at 25% of the total value of the securities in a margin account as per financial industry regulatory authority (finra) requirements.
theliquidation level, normally expressed as a percentage, is the point that, if reached, will initiate the automatic closure of existing positions. it is a security feature developed to prevent investors from incurring significant losses beyond a specified point and is, usually, pre-determined by the trader or the brokerage firm.
Source: Screenshot of the TV series "Flowers".
Reference: *: Translation.