Due to the leverage effect of margin financing and securities lending, it is easy to explode. If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse.
Extended data:
There are usually several situations where positions are decomposed:
1, frequent heavy positions.
One of the characteristics of foreign exchange trading is high leverage, which can even be as high as several hundred times. If you choose high leverage, you will add positions. Although you may make more profits in a short time, it is also the case.
Once the operation is careless or you encounter a relatively volatile market band, you may explode in a short time. This situation is generally caused by traders' quick success and instant benefit. You can take light warehouse operation and spread the risk evenly for many times, which can effectively avoid warehouse explosion.
2. Stubborn.
Many traders fail to close their positions in time when they are in danger because of their personal character, but they are lucky and know that there are tigers in the mountains. This stubborn attitude is stupid in the foreign exchange market. Trading is nothing more than trying to make money in the foreign exchange market. If it doesn't work this time, we can wait until next time, which is undoubtedly a waste of money.
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