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Method for adding and replenishing positions of power grid funds
Method for adding and replenishing positions of power grid funds

For the methods of adding positions and filling positions of grid funds, it is necessary to consult relevant materials to solve them. According to years of learning experience, if you solve the problem of adding positions for grid funds, you can get twice the result with half the effort. Here, I would like to share my experience in the method of adding positions for grid funds for your reference.

Method for adding and replenishing positions of power grid funds

Grid trading method is a trading strategy based on mathematical model, which is mainly used in financial derivatives with high volatility such as CSI 500 stock index futures and small and medium-sized board stock index futures. The core of grid trading method is to operate back and forth within the limit range of long and short, and realize the strategy of low risk and high income by dividing the investment funds into several parts and distributing them evenly within a certain range. The following is a detailed answer to the method of adding positions and covering positions by grid trading method:

1. principle of adding positions to cover positions: every time you add positions, you need to follow the plan. Don't add positions at will. The amount of funds for jiacang needs to be determined according to market conditions and personal risk tolerance. The filling needs to be carried out according to the previously set grid points. In principle, cover positions should be made when there is a decline near the previous grid point.

2. Timing of adding positions and covering positions: After the market falls, when the price reaches the grid point set before, you can consider adding positions or covering positions. In addition, if the previously set grid points have callbacks, you can also consider adding positions or covering positions.

3. strategy of adding positions and covering positions: you can buy them in batches or at one time to add positions and cover positions. It is recommended to buy in batches to reduce the risk of a single purchase. The specific operation mode of buying in batches is to buy near the previously set grid point, and then reduce the price by a certain amount each time.

4. Precautions for adding positions and covering positions: The strategies for adding positions and covering positions need to be adjusted according to market conditions and personal risk tolerance. When adding positions to cover positions, keep calm and avoid emotional operation.

To sum up, the grid trading method is a robust trading strategy, which needs to abide by the principles of adding positions and covering positions. The timing of adding positions and covering positions can be adjusted according to market conditions and personal circumstances. The strategy of adding positions and covering positions can be bought in batches or at one time, and the precautions for adding positions and covering positions need to be adjusted according to market conditions and personal circumstances.

Can convertible bond funds cover positions?

For convertible bond funds, the way of covering positions is the same as that of ordinary funds.

Take China Merchants Convertible Bond A as an example, there are two ways to cover positions:

1. Automatic replenishment: when the fund price of China Merchants Convertible Bond A is lower than the face value, the fund share will automatically replenish the position according to a certain proportion, that is, increase the position.

2. Manual covering positions: When the fund price of China Merchants Convertible Bond A is lower than the face value, the fund share holders can choose to manually cover positions according to their own situation, that is, buy more funds according to a certain proportion.

It should be noted that there is a cost for the convertible bond fund to make up the position, and the cost should be controlled reasonably according to its own situation.

How to calculate the fund's margin profit?

The calculation method of the fund's margin is as follows:

1. Calculation of purchase cost: calculate the total amount by adding the amount of cover position and handling fee.

2. Calculation of average cost: Divided by the amount of covering positions, plus the handling fee, and then divided by 2, it is the average cost of the fund.

3. Profit calculation: the average cost of the fund, plus the handling fee, MINUS the subscription amount is the profit.

Note: The above calculation process is for reference only, and the actual calculation method may be different due to personal factors.

How to reduce the position after the fund makes up the position?

Covering positions and lightening positions belong to two different operations in fund trading, and the specific operations are as follows:

Make-up operation: when the stock price falls, the cost will be reduced, but you are still optimistic about the future performance of the fund, and you can continue to buy to increase the position share and dilute the cost. When covering positions, it is necessary to determine the investment amount according to the risk level of the fund and the individual's risk tolerance, and decide whether to increase or decrease positions according to the trend of the fund.

Reduce positions: When the fund performance is poor or there are better other investment opportunities, you can consider selling some funds to reduce the position share. The lightening operation needs to decide the selling time according to the trend of the fund. If the fund continues to fall, it is recommended to suspend the lightening operation.

It should be noted that whether to make up or reduce the position needs to be decided according to the individual's investment purpose and risk tolerance. Before making any investment, it is recommended to fully understand the basic information and market trend of the fund to avoid unnecessary losses.

Does the fund cover the position when it falls?

When the fund falls, don't make up the position.

Covering positions is a passive way of adding positions, usually in order to dilute the cost after the fund continues to fall. However, covering the position will increase the fund share held by the account, increase the loss of investors and increase the investment risk. If the market continues to decline in the future, it may cause even greater losses.

Therefore, it is suggested that in the initial stage of fund investment, reasonable investment strategies and risk control methods should be formulated in combination with market conditions to cope with possible investment risks.

This is an introduction to the method of adding positions for grid funds.