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A short "position" refers to a position. For example, if you have 10 yuan in your account, 5 yuan uses it to buy stocks, and 5 yuan is cash, then your position is 50%, and the whole position is to use all the money to buy stocks. Short position refers to the situation that leveraged stocks fall to a critical point and the platform is forced to close its position.

It also refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. That is, the loss is greater than the margin in your account. If you don't make up the margin, the foreign exchange market will forcibly sell your goods. This is called short selling.

for instance

Ordinary transaction: Lao Wang spent 50 thousand to buy a stock; Leveraged trading: Lao Wang only has 5,000 yuan and borrowed 45,000 from the exchange. He still buys primary stocks and operates with ten times leverage.

If the total amount of shares rises to 55,000, with an increase of 65,438+00%, Lao Wang will return 45,000 to the exchange after selling, with a net profit of 65,438+00,000. The equivalent of Lao Wang's 5000 principal directly doubled. If the total amount of shares drops to 45,000, there will be a problem, and the residual value is only enough to repay the money lent to Lao Wang by the exchange. So although it only fell by 10%, under the leverage of ten times, Lao Wang's own 5000 is equivalent to losing all his money.

If the total amount of shares falls below 45,000, the ownership of the transaction will sell the shares for Lao Wang, and then directly take away the 45,000 lent. Even if the sale is slow and the stock falls to 44,000, then after selling the stock, Lao Wang not only spends nothing, but also owes the exchange 1 0,000. This 1000 is a debt that Lao Wang must pay. This is the so-called short position.

For financial products that can be traded with margin, such as futures and foreign exchange transactions, a margin of 10% means that the basic assets of 100 yuan can only be bought with 10 yuan. This means that investors have the opportunity to be small and broad. But it is also accompanied by risks. Once the transaction is contrary to the market, the loss will be amplified with leverage.

Warehouse explosion will occur in the following five situations.

The balance of member settlement reserve is less than zero, and it has not been replenished within the prescribed time limit.

The position exceeds the position limit standard and fails to close the position within the prescribed time limit.

Forced liquidation by CICC due to violation of regulations

According to the emergency measures of CICC, liquidation should be compulsory.

Others should be forced to close their positions.