In financial dealings, red ink usually signifies a negative figure.
Thus to be in the red is to be very much in debt.

As a musical term, in the red refers to the typical color codes on a mixing console. Pushing an instrument's or sound's level to the maximum level is putting it in the red--giving it the highest possible volume. On low quality speakers, things produced in the red tend to break up into static. Get better speakers or listen to commercial radio to solve your problems.

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