The short position in the stock refers to the negative equity in the stock account, which means that the margin is not only lost, but also owed. Under normal circumstances, under the daily debt-free settlement system and the compulsory liquidation system, there will be no explosion of positions. However, in some special circumstances, such as when there is a gap change in the market, accounts with more reverse positions are likely to explode. Simply put, an investor loses a lot, especially seriously, and the principal is lost. \x0d\ Strong balance in stocks means that when you overdraw funds or speculate in futures, when your losses exceed the margin, you can't add the margin in time. You will be forced to sell or close your position by the securities company, leaving you no chance to turn over. \x0d\ According to different reasons for forced liquidation, forced liquidation can be divided into the following categories: \ x0d \ 1. Forced liquidation due to failure to fulfill the obligation of additional margin. \ x0d \ 2。 Forced liquidation due to violation of regulations. If a member or customer violates the trading rules of the exchange, the trading ownership will be forced to close the position and violate the trading rules. It mainly includes: exceeding positions in violation of position restrictions; Failing to report or making a false report in violation of the large household reporting system; Manipulate the market together; And other violations that require compulsory liquidation. \ x0d \ 3。 Forced liquidation due to temporary changes in policies or trading rules. \x0d\ Exchange's compulsory liquidation right means that when the spread loss between the open contract held by the customer and the settlement price of the current transaction exceeds a certain proportion, and the customer fails to pay the additional margin within the specified time limit, the Company has the right to compulsory liquidation of the customer's hand contract, so as to reduce the margin level and risk and ensure that the customer is protected from greater economic losses, and the consequences of compulsory liquidation shall be borne by the customer.