In the process of investment, many users often hear that Man Cang will not be allowed to close his position, close his position and explode his position. Short position refers to the situation that investors lose money in the course of trading, and short position will occur in margin trading. In other words, stock margin trading, futures, options, etc. will explode. So, is the principal gone?

did you lose all the principal when you broke the position?

a short position means that the loss is greater than the margin in the user's account, and the company will force the liquidation. Generally, there will be some funds left after a short position, which is the remaining funds after the total funds are deducted from the losses. In other words, the short position generally refers to the forced liquidation, and the short position is that the loss is greater than the deposit in the user's account. The remaining funds after being leveled by the company are the total funds minus the losses of users.

Simply put, short position refers to the situation that the customer's equity in the investor's margin account is negative under some special conditions. There are stock, currency, index and bond funds, and these products will not fall to zero. After the investor is forced to close the position, the remaining funds of the investor are the total funds MINUS the losses, and there may be some left.

because a short position may lose everything, investors need to control their investment positions and manage their funds reasonably in order to avoid this situation. After entering the investment market, set a stop loss point according to the investor's trading strategy, and don't blindly follow the trend.

summary: short position refers to the fact that the margin in the investor's account is no longer enough to maintain the original contract, and the margin is zero due to the forced liquidation due to insufficient margin. The deposit is zero, but there will still be some money left in the account.