When the futures losses are serious, the principal may be lost, even the money owed to the futures company after the principal loss. This situation is called wearing a position.

If the futures have a margin trading system, when the investor's margin is lower than the basic requirements, the futures company will ask the investor to add margin. If investors do not add margin, they will be forced to close their positions. In extreme cases, the product will continue to develop in the opposite direction to the contract. At this time, futures companies can't close their positions, and investors may wear positions.