For example, if your account has $654.38 +00000, you can bear the loss of $5000 at most (don't ask why, just for example). At this time, if you use a certain margin leverage to trade, generally speaking, you can use up to $5,000 as a margin, so that your risk can be controlled. However, if you trade blindly, the established position (position) is too large, and the margin exceeds $5,000, once there is a full loss, then we say that you have already exploded, because you have exceeded your maximum risk tolerance.
The explanation given by experts in Wang Yang is only for transactions with margin. In fact, the full margin (100% margin, just like when we buy a firm offer and now buy domestic stocks) will also explode. If you are interested, you can check the information of "3.28 Treasury bond futures case". There were two explosions in that case. The first is that the margin used in the transaction exceeds the company's assets, and the second is that the proportion of government bonds sold is higher. Another example of warehouse explosion is the Suzhou adzuki bean incident of 1996. You can also check the information if you are interested. That example is that the buyer can only have XXX tons of adzuki beans in the warehouse when the delivery date is calculated (there is no transportation road designed in the broken warehouse, so the simple road can't be transported normally and the products can't be transported in). At that time, the market demand was much greater than this figure. 5438+1June 1996+1October all the adzuki beans needed will not be delivered to the warehouse until April, so the buyer insisted on not closing the position and demanded delivery. As a result, the exchange finally had to announce the delayed delivery date. Hehe, this example is that one party leads to the other party's involuntary explosion through some means.