leather jewelry wholesale usa What does a contract mean?

selling wholesale jewelry The contract burst means that when the market changes too fast during the investment, when investors have not had time to add a deposit, the deposit on the account should not be enough to maintain the original contract. In this case, the investor account will be forcibly closed because of insufficient margin, which will lead to zero margin. Blasting positions often refers to the negative number of investors' account equity, which means that the security deposit is not owed not only.
[Extended information]
1. Blasting the position refers to the negative number of the account equity, which means that the security deposit not only loses all losses, but also owes it. Under normal circumstances, under the day -by -day liquidation system and forced liquidation system, the liquidation will not happen. However, in some special circumstances, such as when the market is empty, the accounts that hold more positions and the inverse direction are likely to burst positions.
2. In the event of a burst, investors need to make up for the loss, otherwise they will face legal pursuit. In order to avoid this situation, special control needs to be controlled, and it is not as good as stock transactions. And to track the market in time, you cannot buy it like stock transactions. Therefore, the futures are not suitable for any investor to do.
The entire process of futures transactions can be summarized as built -up, positioning, liquidation, or physical delivery. Corporation is also called opening a warehouse, which refers to a new number of futures contracts for traders. Buying or selling a futures contract in the futures market is equivalent to signing a long -term delivery contract. If the trader retains the futures contract until the end of the final trading day, he must settle the futures transaction through physical delivery or cash liquidation. However, there are a small number of physical delivery. Most speculators and hedging people generally choose to sell the buying futures contracts before the end of the final trading day, or buy the sold futures contracts back. That is, the original futures contract is sold through a number of futures transactions with the same number and opposite direction, so that futures transactions are settled and the obligations of physical delivery expiration are lifted. This kind of buying back -selling contract, or selling the contract to buy a contract is called a liquidation. After the position is established, there is no liquidation contract.
This can choose two ways after the trading positions can be selected: either choose to close the position, or keep it until the last trading day and conduct physical delivery.