What should I do with the money owed by the futures explosion?

Short position of futures refers to the situation that the margin in the investor's account is insufficient, which leads to the forced liquidation of futures. After the futures are short, investors owe money to futures companies. What should I do with the money owed by futures bears? Let's continue to watch.

What about the money owed by the futures explosion?

If the investor still owes money to the futures company after the short position, he needs to make up for it. If they can't make up for it, the futures company has the right to recover the debt. If they breach the contract maliciously, the futures company may sue the customer, which will be reflected in the credit report and then may be blacklisted by all futures companies. For investors who owe a huge amount of money, they can negotiate with the futures company to see if they can repay it in installments or interest-free or at a lower interest rate.

Reasons for short futures positions:

I. Heavy warehouse operations

Among futures traders, many traders are too eager for quick success and instant benefit and have no long-term good plans. The mentality of getting rich overnight makes them carry out heavy positions. The end result is that not only do you not make money, but you also lose miserably. So, how to avoid explosion? The most direct way is: it is best to carry out light warehouse operation, so that even if there is a loss, it will not reach the point of explosion.

Second, there will be no stop loss.

Blind self-confidence and wanting to make big money are the problems of many futures traders. They don't know how to stop loss, and they don't set a stop loss. They always hope that a few companies can run in the direction of opening positions, but many times it backfires. Not only did I not make any money, but there was even an explosion. Therefore, if you want to avoid short positions, you must adjust your positions and set a stop loss. Only in this way will the bears stay away from you.

Third, there are too many transactions.

The problem of empty warehouse will appear not only in the case of heavy warehouse, but also in the case of light warehouse. The main reason is that although these traders traded lightly, they did not follow the plan when trading, and they always placed orders at will, eager for success, which eventually led to loss of confidence, depression and tragic losses. Therefore, futures trading should also be carried out as planned, not too much trading.

Therefore, in order to avoid futures positions, investors should operate correctly, think more and analyze more, and don't operate blindly. That's all. I hope it helps you.