Is it only a disadvantage to be short in futures? I believe that many people lack the corresponding concept of short positions in futures, or think that short positions in futures have only disadvantages. Therefore, Bian Xiao specially brought you some short futures positions, hoping to help you.
How much is the short position of futures?
The position of short positions is set by various exchanges, and different futures varieties and exchanges will have different regulations. Generally speaking, the maintenance margin level stipulated by the exchange is used to control the risk of investors and avoid excessive losses.
Short positions usually change according to market fluctuations and contract values. For different futures varieties and exchanges, their positions may fluctuate within a certain proportion. For example, the maintenance margin requirement for futures contracts is 10%, so when the net account value (equity) of investors falls below 10% of the market value of positions, they may face the risk of short positions.
It should be noted that short positions are not only bad, but also have some functions and influences:
Avoid further losses: when the losses of investors exceed the account balance or cannot meet the requirements of maintaining the deposit, they can close their positions in time to prevent further losses.
Protect the interests of the exchange and other investors: the exchange sets short positions rules to maintain market stability and fairness, ensure that participants' trading behavior conforms to norms, avoid problems such as capital chain breakage, and protect investors' interests.
Standardize the market order: The short position mechanism can urge investors to abide by the risk management principles, control positions and losses, and reduce market manipulation and excessive leverage.
What is the ratio of short positions in futures?
The short position ratio of futures is generally 10%. However, some futures companies have done a good job in short positions, and some futures companies have a low proportion of short positions. Therefore, the proportion of futures short positions is calculated according to the percentage set by the exchange in the trading rules, and the proportion of futures short positions is generally 10%.
How to judge the shortage of available margin
Before we know how to judge whether the available margin is insufficient, let's first understand the degree of risk, which is equal to the occupation of margin/customer's rights and interests. For a simple example, if a customer's total account equity is 65,438+10,000 yuan, and the purchase of a futures product takes up 80,000 yuan, then the risk level of this customer is 80%. When the risk degree exceeds 65,438+000%, it means that the available margin is insufficient and there is a risk of being leveled. There are two preconditions for the explosion. One is that the position is too heavy and the margin is too high. The second condition is that the available margin is insufficient due to unfavorable market fluctuations. Therefore, controlling the position and setting a high probability stop loss can avoid the occurrence of short positions. In addition, most futures trading software now have risk indicators on the trading interface.
What does futures explosion mean?
Short futures position simply means that the futures account is zeroed due to insufficient margin, which is the situation that the account loss is greater than the total account funds after the investor closes the position. When investors open positions, the market does not run in the expected direction, but in the opposite direction. If investors do not close their positions in time, resulting in an increase in losses and exceeding the margin without additional funds, there is a risk of being forced to close their positions, which may lead to huge losses for investors.
Is it better for retail investors to play futures or stocks?
It is better for retail investors to play with stocks for the following reasons:
1, stocks have price limits, while some futures have no price limits, which is risky.
2. Futures have a margin system, that is, investors can trade more subject matter with less money, which not only expands the income, but also magnifies the risk and is easy to explode. At the same time, under extreme market conditions, even the situation of short positions leads investors to owe money to the platform, and the worst result of ordinary stock trading is the delisting of listed companies.
3. Futures can be traded in two directions, that is, they can be long or short, which realizes the T+0 trading system and increases investors' speculation on the market.
4. Futures are greatly influenced by the economic situation and the international market, and have higher professional requirements for investors.
In short, investors should try their best to choose products suitable for their investment preferences and risk tolerance during the investment process.