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. Generally speaking, a short position means that the loss of investors is greater than the deposit of personal accounts. Generally speaking, after the forced closure of the company, the remaining capital is the total capital MINUS the loss, and usually there is a part of surplus. There is another explanation for short positions, that is, leveraged stocks fell to a critical point and were forced to close their positions by the platform. Forced liquidation refers to the company helping investors to dispose of listed companies at market prices.
Usually, only when the market situation changes significantly, most of the funds in the investor's margin account are occupied by the trading margin, and the trading direction is opposite to the market trend. Due to the leverage effect of margin trading, it is easy to break through the position. For example, because the position is too heavy, the ability to resist risks becomes worse; For another example, if the market changes too fast for investors to increase their margin, it will lead to short positions.
Once the warehouse explodes, the consequences are still very serious. If the loss is caused by the explosion, and the loss is caused by the investor himself, the investor must make up for the loss, otherwise he will face legal recourse. The occurrence of warehouse explosion is closely related to the unfavorable fluctuation of the market. If you don't set a stop loss in advance before trading, it is easy to delay the loss because you don't respond in time when facing the risk. If the stop loss is strict, even if the market suddenly reverses, you can leave quickly with the least loss in the first time and keep the funds in your account to the greatest extent. Therefore, the explosion of gold in the investment market can be said to be a very serious loss. Once a short position occurs, it basically means that investors can only regret quitting. Therefore, in daily financial management, we must make full use of the two skills of light warehouse trading and limiting stop loss to effectively reduce market risks, reduce the possibility of short positions and achieve stable market profits.