The forced liquidation system means that when the customer's trading margin is insufficient and has not been replenished within the specified time, the customer's position exceeds the prescribed position limit, and the customer is punished due to violation of regulations, he shall be punished according to the emergency measures of the exchange. When forced liquidation occurs, futures brokerage companies implement a forced liquidation system in order to prevent further expansion of risks.

Forced liquidation can reduce investment risks caused by margin leverage, but the resulting losses will still be borne by the investors themselves.

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