A short position means that the loss is greater than the margin in your account. After the company is forced to draw a tie, the remaining funds are the total funds MINUS your losses, and generally there will be a part left.
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. If short positions lead to losses, and they are caused by investors, investors need to make up for the losses, otherwise they will face legal recourse.
Extended data
There are usually several situations where positions are decomposed:
1, frequent heavy positions: This situation is generally caused by traders' quick success and instant benefit. Can take light warehouse operation, fewer times, risk sharing, can effectively avoid warehouse explosion.
2. Obsession: Due to personal personality reasons, many traders did not close their positions in time at dangerous times, but took chances and knew that there were tigers in the mountains.
3. No Stop Loss: If no stop loss point is set before the transaction or the stop loss operation is not strictly implemented during the transaction, there is the possibility of short positions. This is also a cliche, and its importance is self-evident. You can also combine stop loss with position management and use technical conditions to stop loss.
4. intraday trading: I think that with the idea of making a profit or winning back a loss, I will operate at will when I see possible trading opportunities, so that the probability of encountering a crisis will greatly increase and the possibility of short positions will always increase.
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