Novices who come into contact with futures may still lack a certain concept of short positions in futures and do not know how to operate futures correctly. Therefore, Bian Xiao specially brings you the average time of futures short positions, hoping to help you.
How long does it take for a novice futures trader?
There is no fixed average value for the time and quantity of futures short positions, because it is influenced by many factors, including market fluctuations, investors' trading strategies and risk management capabilities. For beginners, the risk of exploding positions may be higher due to lack of experience and skills.
Novices should pay attention to the following points to help reduce the risk of warehouse explosion:
Study and Practice: Before you start futures trading, you must fully learn relevant knowledge and technical analysis methods, practice through simulated trading or small trading, accumulate experience and improve your skills.
Make a trading plan: make a clear trading plan and risk management strategy, including setting a reasonable stop loss position and profit target, and controlling the position size.
Strictly implement stop loss: set a reasonable stop loss point, and once the stop loss condition is triggered, decisively implement the stop loss operation to avoid further loss expansion.
Careful selection of trading varieties: for beginners, it is recommended to choose varieties with good liquidity and high trading activity to reduce operational risks.
Risk control and fund management: allocate funds reasonably and avoid excessive leverage. Don't put all your money in one or several positions, and reduce the overall risk by diversifying your investment.
Real-time market monitoring: keep real-time observation and tracking of the market, and timely adjust trading strategies or take profits.
It should be noted that the futures market has a high-risk nature, and even if corresponding risk control measures are taken, there may still be losses or even short positions. Therefore, novices should be cautious in futures trading, and it is recommended to make firm trading after full study and preparation, and gradually increase the trading scale.
What happens when futures explode?
After the futures burst, investors will suffer serious losses. At this time, they can only choose to cover their positions or be forced to close their positions by futures companies without additional margin. In addition, futures companies have the right to recover debts after liquidation. For investors who owe a huge amount of money, they can negotiate with the futures company to see if they can repay it in installments, or with interest-free or reduced interest rates.
What is a futures short position? What will happen if you don't deal with it after the short position?
A short futures position means that the available funds in the customer's account are not enough to make up for the loss. Simply put, the available funds in the account are negative. If it is serious, all rights and interests in the account will be negative after all positions are closed. We call it a short position. From a certain point of view, short positions are even more vicious. For a simple example, the total equity of a customer's account is 65,438+10,000, and the margin for purchasing a futures product is 80,000. When the loss exceeds 20,000, the available funds in the account are 20,000.
If the customer does not handle the position after the explosion, we will close the position in the customer's hand according to the futures closing system until the available margin balance of the customer is positive. If the position is pierced, the futures company will recover from the investors. If the position amount is sufficient, the futures company can apply to the court to freeze the equivalent property under the investor's name for enforcement, put the customer on the old list, limit high consumption, and affect credit reporting.
Will the spot futures explode?
Spot trading also has leverage, and when the margin is insufficient, the system will burst the position if it is forced to close the position.
Short positions generally appear in extreme markets, and the higher the leverage, the greater the probability of short positions, and the lower the leverage, the lower the probability of short positions.
For example, under the leverage of 100 times, when the subject matter purchased by investors rises by 1%, the yield of long investors reaches 100%, and the loss of short investors is 100%, that is, short positions appear; If its leverage is 50 times, when the subject matter purchased by investors rises by 2%, the yield of long investors will reach 100%, and the loss of short investors will reach 100%, that is, there will be short positions.
Therefore, in the process of futures trading, investors should make rational use of their leverage, operate lightly, try to ensure that they have enough margin, and set up a stop-loss and profit-taking position after making orders.
What do you mean by contract explosion?
Contract short position refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances, that is, short position is the operation that the loss is greater than the margin in your account, which leads to the platform's forced liquidation due to risk considerations.
After short positions, investors may owe money to futures companies. At this time, investors need to make up the deficit, otherwise they will face legal recourse.
Investors should pay attention to the following points when conducting contract transactions in order to minimize the occurrence of short positions:
1, control your position, you can't do Man Cang operation like stock trading, you should leave enough funds for contract operation.
2. Track the changes of the market in time. When the market changes in the opposite direction, close the position in time, instead of staying put.
3. High income means high risk. Always put risk control in the first place to ensure the safety of your principal.