The so-called short position refers to the situation that the balance of settlement reserve in the investor's margin account is zero or negative, and the margin cannot be met within the specified time, and the position is forced to close. 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.

Gold explosion

When there is a short position, investors must make up the deficit in time, otherwise they will face legal recourse. In order to avoid this situation, it is necessary to control positions, manage funds reasonably, and avoid Man Cang operations like stock trading. And track the market in time, and you can't buy it like a stock market.

Two situations of warehouse explosion

In one 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 ≥ the total amount of funds in the account, that is, the customer's equity is ≤0.

In the second case, because the market changes too fast, the deposit in the investor's account can't maintain the original contract before the deposit is added. This kind of margin "zeroing" caused by forced liquidation due to insufficient margin is commonly known as "short position", and the meaning of "short position" is the same as "short position".

How to prevent it

Do not operate in Man Cang when placing a spot order. You need to keep some supplementary funds in your account. Friends should understand that the risks and benefits of any investment in it are directly proportional.

Be sure to set a stop loss before doing spot trading. Stop loss is an insurance to ensure loss. Usually the market is dull and there is nothing. It is a pity to stop loss, but once the market breaks out, there is no way to do it in reverse, and it is too late to regret it.

Spot trading can be done 22 hours a day, so don't rush to place an order. Look at the trend of the market and keep a steady mind. As long as the trend is right, even if there are some ups and downs in the middle, the market will follow the trend and finally be profitable.

To make spot investment, you need to maintain a good mentality, and mentality determines winning or losing. Adjust your mentality and remember not to be impetuous.

After the transaction is profitable, if it is not profitable, it can be profitable to close the position. A deal that cannot be greedy will be accepted when it is good.