A short position means that after the margin is removed, the loss is greater than the available funds in the account. After the company is forced to draw a tie, the remaining funds are the total funds MINUS your losses, and generally there will be a part left. 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.

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There are two kinds of empty positions. One case is that futures customers still owe money to the futures exchange after closing their positions, that is, the floating gain and loss of the account is ≥ the total amount of funds in the account, that is, the customer's equity is ≤0.

Another situation of warehouse explosion: warehouse explosion caused by heavy warehouse operation is more common. For heavy positions, if the proportion of positions is above 90%, there is less unused funds and less room to resist reverse changes. Heavy warehouse operation is a way of small profits but quick turnover. Why? Because of the reverse change, if the margin is insufficient, you will explode. This is a software system that will automatically prevent you from closing your position. After the explosion, you didn't lose much money in your account, let alone negative, but the value of the contract you held, which is a lot of money. For example, if you have a principal of $65,438+$0,000, your position occupies $9,000, and only $65,438+$0,000 is unoccupied. If the loss of 65,438 yuan+0,000 yuan is written off and the margin is insufficient, the system will automatically close the position, that is, explode the position. At this time, your account funds are not zero, but there are still $9,000.