Short selling refers to short selling by bearish investors, but the market outlook suddenly rises, resulting in huge losses. For example, investors think that a stock will fall in the future, so they sell it to a securities company, but a stock not only does not fall, but even skyrockets. For short-selling investors, not only the principal loss, but also the leverage loss of securities lending are called short positions.

Short is a common technical term in futures, including short and long. Either way, when the futures price shows the opposite trend and the loss is greater than or equal to the margin, the futures are forced to close their positions and the margin is completely lost.

Futures trading has its own "leverage", and the leverage ratio of different varieties of futures is different. The leverage ratio of commodity futures is generally 6- 15 times. For example, the leverage ratio of crude oil futures is 10 times, that is, the investment of 10000 yuan of self-owned funds can incite the investment of 10000 yuan, and leverage amplifies the gains and losses.

Short position is a phenomenon brought by the "leverage effect" of futures. As we all know, futures can be bought up or down, but when there is an opposite trend in the future, when the self-owned funds in the investor's account are less than or equal to the loss, they will be forced to close their positions to avoid the damage of the fund provider due to continuous decline/rise.

(1) When you buy "bullish" but it doesn't rise as scheduled in the future, and you are forced to close your position due to excessive decline, it is a multi-position explosion.

(2) When you buy "short", but it doesn't fall as scheduled in the future, it is an empty order when you are forced to close your position due to excessive increase.

After the short position, the investor's own funds will also "return to zero". If you don't close your position in time, even sometimes investors need to bear the losses other than the margin.

For securities investors, short positions mean that losses have fallen below the liquidation line. At this time, the proportion of protection will be reduced. If the margin is not added, the brokerage firm will be forced to close the position, and the losses and handling fees caused by the forced liquidation will be borne by the investors themselves.

In the futures market, short position is also a meaning. Because futures can buy up and down, investors who buy down have made empty orders, but the market outlook has risen against the trend, resulting in huge losses.

Generally speaking, for investors who do not have margin financing and futures options, there will be no short positions, because there will be no short positions unless the stock price falls to 0 yuan.