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.

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.

At present, there is no short position risk in Public Offering of Fund and most private equity funds, and only a few leveraged private equity funds have short position risk.