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. 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. If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse.

Experts said that most of the explosions were related to improper fund management. In order to avoid this situation, it is necessary to control positions in particular, manage funds reasonably, and avoid possible Man Cang operations in stock trading; And unlike stock trading, investors must track the stock index futures market in time. Therefore, stock index futures are not suitable for all investors.

Close position = close position, sell the original, and sell (short) the original.

[Operation Flow of Futures Trading]

Bull market → buy and open positions → sell and close positions.

Bear the market → sell and open positions → buy and close positions.

The whole process of futures trading can be summarized as opening positions, holding positions, closing positions or physical delivery. Opening a position, also known as opening a position, refers to the new purchase or sale of a certain number of futures contracts by traders. Buying and selling a futures contract in the futures market is equivalent to signing a forward delivery contract. If traders keep futures contracts until the end of the last trading day, they must settle futures transactions by physical delivery or cash settlement. However, only a few people make physical delivery, and most speculators and hedgers generally choose to sell their futures contracts or buy back their futures contracts before the end of the last trading day. That is to say, the original futures contract is written off by a futures transaction with the same amount and opposite direction, thus ending the futures transaction and relieving the obligation of physical delivery at maturity. This behavior of buying back a sold contract or selling a bought contract is called liquidation. An open contract after opening a position is called an open contract or an open contract, also known as a position. After opening the position, traders can choose two ways to close the futures contract: either choose the timing of closing the position or reserve it for physical delivery on the last trading day.