Forced liquidation means that in futures trading, when the margin is insufficient and the payment is not made in time, the brokerage company has the right to force liquidation of the positions held by customers.
Futures are subject to margin trading system, regardless of it after buying, which may be that the principal loss will be pushed back to the securities firm's funds.
For example, the price of a ton of wheat contract is 2000 yuan, the first hand is 10 ton, and the margin ratio is 5%, so the amount to be paid for buying this 1 0 * 5% = 2000 yuan, (if there is no margin system, 2000 */kloc-.
If investors ignore it after buying and the price continues to fall, the company will remind investors to pay the deposit when it falls to a certain extent. If there is no supplementary funds within one day, the company will force the liquidation at the market price. If the market price drops 1.500 yuan, and the investor loses 500 *10 = 5,000 yuan, and only pays 2,000 yuan before buying, then the investor owes the company 3,000 yuan.