What does it mean for compulsory liquidation? How much will it be forced to close the position?

5 thoughts on “What does it mean for compulsory liquidation? How much will it be forced to close the position?”

  1. Forced liquidation refers to the insufficient transaction margin of members or customers of the futures exchange and does not make up for it within the prescribed time, or when the position of the members or customers exceeds the specified limit, or when a member or customer violates the rules, the exchange to prevent risks from risks to prevent risks prevent risks. Further expansion, and forced liquidation. The liquidation rate of each platform is different. Generally, it is 30--50%, so customers must control their own margin during operation and try to increase funds as much as possible.
    The reasons for compulsory liquidation in futures transactions, such as illegal behaviors such as increasing transaction margin in time, and temporary changes in policies or trading rules such as violations of transaction bonds and violations of transaction position restrictions. In the standardized futures market, the most common is the forced liquidation due to insufficient customer transaction margin. Specifically, it means that the transaction margin required for the customer's position contract is insufficient, and it fails to add the corresponding margin or actively reduce the position in accordance with the notification of the futures company. Avoid losses from expanding and forcibly calm down the customer part or all positions, and fill in the bond gap to fill the deposit gap.

  2. The compulsory liquidation can be said to be specially set for customers' stop loss. It will not be left without losing. How much compulsory liquidation depends on the platform. Many platforms will lose 70%of the customer's amount. The platform loses 50%and is forced to close the position

  3. Forcibly liquidation is also called forced liquidation, also known as being beheaded/be cut/burst. Different from the main body implemented by forcibly liquidation, forcibly liquidation can be divided into exchanges forcibly liquidation and brokerage companies forced liquidation.
    The different positions according to the reasons for forcibly liquidation can be divided into the following categories:
    1. Forcibly liquidation due to failure to fulfill the obligation of additional margin.
    2. It was forcibly closed for illegal acts. Members or customers violate the exchanges' trading rules, and the exchanges shall be forced to close their positions on their positions in accordance with the provisions of the trading rules of the exchange.
    3. Forcibly liquidation due to temporary changes in policy or trading rules. In the past few years, this situation has often occurred, and trading rules are often amended due to policy or temporary regulations of regulatory authorities, or they cannot be implemented temporarily.
    Sugs directly Baidu: forced liquidation

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