When triple leverage explodes, it usually depends on the investor's personal capital status. Generally, when the capital utilization rate exceeds 90% of the transaction and the margin is not increased in time, it is more likely to explode. Position explosion usually means that under certain trading conditions, an investor's personal margin account equity becomes negative and the asset loss reaches a certain level, resulting in the inability to trade normally.

Introduction to liquidation

Liquidation refers to the forced liquidation of stocks, which can also be called being liquidated or liquidated. When a position is liquidated, the investor's losses exceed the margin in the account. There are many liquidations in gold spot trading and futures trading. In futures trading, forced liquidation usually includes two situations: the exchange's liquidation of the futures company's position and the futures company's personal liquidation of the investor's position. The reasons for position explosion may be illegal operations, failure to fulfill additional deposit obligations, changes in policies or trading rules, etc. The person subject to execution will usually receive corresponding notice before forced liquidation.