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 the market situation changes greatly, if most of the funds in the investor's margin account are occupied by trading margin, and the trading direction is opposite to the market trend, it is easy to explode the position because of the leverage effect of margin trading. If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse. Experts said that most of the explosions were related to improper fund management. In order to avoid this situation, it is necessary to control positions in particular, manage funds reasonably, and avoid possible Man Cang operations in stock trading; And unlike stock trading, investors must track the stock index futures market in time. Therefore, stock index futures are not suitable for all investors.

There are usually several situations where positions are decomposed:

1. Frequent heavy operations.

One of the characteristics of foreign exchange trading is high leverage, which can even be as high as several hundred times. If you choose to add positions with high leverage, you may earn more profits in a short time. Similarly, once you operate carelessly or encounter relatively fluctuating market bands, you may also explode positions in a short time. This situation is generally caused by traders' quick success and instant benefit, so we can take light warehouse operation, which will reduce the risk.

2. Stubborn.

Many traders fail to close their positions in time at dangerous times due to personal personality reasons, but they are lucky and know that there are tigers in the mountains. This stubborn attitude is stupid in the foreign exchange market. Trading is nothing more than trying to make money in the foreign exchange market. If you fail this time, you can wait until the next time, which is undoubtedly a waste of money.

3. There is no stop loss.

If the stop loss point is not set before the transaction or the stop loss operation is strictly implemented during the transaction, it is possible to explode the position. This is also a cliche, and its importance is self-evident. You can also combine stop loss with position management and use technical conditions to stop loss.

4. Day trading.

I think that with the idea of making a profit or winning back a loss, I will operate at will when I see possible trading opportunities, so that the probability of encountering a crisis will greatly increase and the possibility of opening a position will always increase. Generally speaking, it is wisest for us to go out resolutely after three failed transactions.

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.