Short position refers to the behavior that the system automatically closes the position when the account balance is not enough to make a loss.
Due to the daily liquidation system and the compulsory liquidation system in futures trading, there will be no short positions in general. When the investor's account equity is negative, there is a short position, indicating that the investor not only lost all the margin, but also owed the futures brokerage company debt.
Generally speaking, the more reserve funds in the account, the stronger the ability to resist risks, and the higher the number of natural profits. Investment is like this, and risks and benefits are always accompanied. Risk+return = 1, the relationship between this and that. When you put yourself in a high-risk state, the possibility of income is very slim; When you control the risk in a small range, it will satisfy you richly. Many investors consider how to make money before investing. In fact, in the process of investment, how to control risks is the key. It is difficult to control risks without making money.
There are two kinds of explosions:
In a case, futures customers still owe money to the futures exchange after closing their positions, that is, the floating profit and loss of the account is equal to or higher than the total amount of funds in the account, that is, the customer's equity is equal to or lower than 0. Because the market changes too fast, before investors have time to add margin, the margin in the account can no longer maintain the original contract. This kind of margin that is forced to close due to insufficient margin is commonly known as "short position", and "short position" has the same meaning as "short position"
At present, there is basically no short position phenomenon in China, and there is no limit on the rise and fall. When the margin is maintained below, the futures company will automatically close the position. In Hong Kong's Hang Seng Index futures, the Hang Seng Index is a four-hour trading system. The next day, there may be a big gap or gap, which will lead to the reversal of positions, and the position will explode as soon as it opens, or even be negative. The negative number is the money owed to the futures company, because the futures brokerage company invests the money in the futures exchange in order to close the position of customers.
In another case, the explosion caused by heavy positions is more common. For heavy positions, such as more than 90% positions, it takes up less funds and has 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. When will futures break out?