Forced liquidation is also called forced liquidation, which is also called being cut, cut and exploded. It refers to the situation that the customer's rights and interests in the investor's margin account are negative under some special circumstances. 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. Commonly used in spot gold and futures trading.
Give an example of closing a position
For example, an investor opened his position in 65438+February 15, and bought the Shanghai and Shenzhen 300 index futures 10 lot (up) in 65438+ 10, and the transaction price was 1400 points. At this time, he has a long position of 10.
By 65438+February 17, investors saw that the futures price had gone up, so they sold six lots of 65438+ 10/0 stock index futures at the price of15. After the transaction, the actual position of the investor is only 4 lots.
If the investor sells six open contracts of 65438+ 10 month stock index futures at the time of declaration, after the transaction, the actual position of the investor is not the original four hands, but the long position of 10 hand and the short position of 6 hands.
Refer to the above? Baidu encyclopedia-liquidation
Refer to the above? Baidu encyclopedia-forced liquidation