Is it all lost when futures explode?
If the futures explode, it will be all lost. 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 short positions occur, investors need to cover their positions, otherwise they will face legal recourse, and the formal platform will only forcibly close their positions to cover their positions. Therefore, short futures doesn't mean all the money is gone, but investors need to control their positions, manage their funds reasonably and avoid Man Cang operation. Futures short position refers to the floating profit and loss of the account after the futures trader closes his position, which is greater than or equal to the total amount of funds in the account, that is, the customer's equity is less than or equal to 0. Due to the rapid changes in the market, futures traders failed to add margin in time when they lost money, and the margin in the account could not maintain the original contract. This kind of margin zeroing caused by forced liquidation due to insufficient margin is commonly known as short position.