The explosion of positions is mainly manifested in the futures market. The risks of stocks and futures are different, and there is a huge difference between them in the maximum amount of money that may be lost. So let's talk about it today, what is a stock explosion?

Theoretically, the biggest loss of investing in stocks is 100%, that is, all the principal is lost, which is basically not the case in reality. However, there is a concept of short position in stock index futures, that is, it is not enough for investors to lose all their funds, and they still owe the futures company a deposit.

The so-called short position refers to the situation that the customer's rights and interests in the margin account are negative under some special circumstances. When the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading. Investors need to make up the deficit, otherwise they will face legal investigation.

A short position means that the account equity is negative, which means that the deposit is not only lost, but also owed. Under normal circumstances, under the daily liquidation system and the compulsory liquidation system, the explosion of positions will not happen. 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.

At present, the stock market in our country generally won't break out unless you increase leverage.

Many times, investors borrow money from securities companies to buy stocks. That is, financing buying. In order to avoid risks, you will be asked to sign a contract. The contract stipulates that when the stock falls to a certain price, you must increase your capital investment, otherwise the system will automatically sell your stock, but you may not have enough funds to reinvest, so your stock will be sold at a lower price to repay the money you owe.

For example, you borrowed 6,543,800 yuan from a friend to buy a house, and you used this house as collateral. If the houses in the market keep falling and your house price drops to 800,000, your friends will panic and say to you; Either pay me back 1 10,000 in cash, or I will sell your house by force to pay me back. Because you can't come up with 6,543,800 yuan in cash at the moment, you have to sell the house and pay back the money. This is a short position.