What is the profit margin?
Generally speaking, when investors lose 90% of their funds in margin trading, the exchange will issue a risk warning. When the loss reaches 1.20%, the exchange will forcibly close its position, which is called short position.
For example, the investor * * * has 70,000 yuan, and he first traded a futures product with 40,000 yuan. At this time, the remaining available funds are 30,000 yuan, and the liquidation will not be forced. But then the market price changed and the loss reached 3 1000 yuan. At this time, the available loss amount is-1000 yuan, which meets the liquidation conditions of the exchange, that is, breaking the position.
Other popular science:
1 Man Cang: All available balances in the account can be used as collateral assets to avoid forced liquidation. The advantage of this model is that as long as the leverage is moderate, the possibility of short positions is very low.
2 warehouse by warehouse: when the position held by the user bursts, it will only lose the margin amount of the warehouse and will not affect other funds in the contract account. In the warehouse-by-warehouse mode, profit is the biggest loss for users.
The above are some contents of the margin explosion, so you can pay attention to it.