Hello, futures are subject to margin trading system. When the transaction is reversed and losses occur, the account margin is insufficient, which exceeds the risk of the futures company or the risk of the exchange. The risk control department of the futures company will inform investors to add funds or lighten their positions by themselves. Otherwise, the futures company has the right to force some investors to open positions so that the available funds are positive. This operation is called forced liquidation, which can also be understood as short position in futures.

The explosion of futures positions does not necessarily mean that all the funds in the futures account are lost. Unless there is a continuous unilateral market, there is the possibility of loss and the possibility of wearing positions.

A brief understanding of the explosion system:

Also known as the strong leveling mechanism, when you trade Man Cang futures, that is, the funds are used about 100%, the trading software generally shows that the risk is 100%. When the market is in the opposite direction to your position, the futures list continues to lose money, resulting in negative available funds and the risk is greater than 100%. At this time, the risks of futures companies generally exceed the standard; There are two situations. Usually, when the margin of the exchange is not lower than the margin of the exchange, the futures company will only inform you to cover the position and will not force the liquidation. Only when the risk is lower than the exchange and you don't make up the margin, the futures company has the right to make up some of your positions, and the available funds will become positive and will not be flat again.

On the other hand, during the long vacation, futures exchanges generally raise the exchange margin, because foreign bulk futures exchanges will continue to trade, so futures companies will make a strong balance with reference to the company margin. When it is lower than the company's deposit and you don't make up the funds, it will also level some of your positions, so that the available funds are positive. You need to pay attention to this situation. Generally, before a big holiday, it depends on whether your account risk exceeds 80%. If it exceeds 80%, it will be easily leveled.

Therefore, futures trading is not necessarily the lower the margin, the better, the better. The lower the margin, the closer it is to a strong level.