Contract explosion means that the market changes too fast when investing, and the deposit in the account should not be enough to maintain the original contract before the investor can add the deposit. In this case, the investor's account will be forced to close due to insufficient margin, resulting in zero margin. Short positions often mean that the investor's account equity is negative, which means that the deposit is not only gone, but also owed.

Extended data

1. A short position means that the account equity is negative, which means that the deposit is not only completely lost, but also owed. Under normal circumstances, under the daily liquidation system and the compulsory liquidation system, there will be no explosion of positions. However, in some special circumstances, such as when there is a gap change in the market, accounts with more reverse positions are likely to explode.

2. When there is a short position, investors need to make up the deficit, otherwise they will face legal recourse. In order to avoid this situation, it is necessary to control positions specially and avoid Man Cang operation like stock trading. And track the market in time, and you can't buy it like a stock market. Therefore, futures are not suitable for any investor to do.

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.