Forced liquidation means that when the trading margin of members or customers of a futures exchange is insufficient and not replenished within the specified time, or when the positions of members or customers exceed the specified limit, or when members or customers violate the rules, the exchange implements forced liquidation to prevent the risk from further expanding. So under what circumstances will silver td be forced to close its position?
What will be forced to close the position?
Under any of the following circumstances, the forced liquidation of silver td will be carried out in accordance with the relevant rules of Shanghai Gold Exchange:
A. The customer's position exceeds the position limit set by the exchange and the bank;
B was forced to close the position by Shanghai Gold Exchange due to violation of regulations;
C. Other circumstances that should force liquidation.
Silver td compulsory liquidation rules
The order of forced liquidation is: au (t+d) long-au (t+d) short-au (t+n1) long-
AU(T+n 1)short-AU(T+N2)long-AU(T+N2)short-Ag(T+d)long-Ag(T+d)short。
When a bank forcibly closes a customer's position account, it selects the appropriate number of forced positions and the entrusted price according to the customer's corresponding position price, position quantity, floating loss and market fluctuation. However, the Bank reserves the right to forcibly close all positions in the customer's contract at a market-acceptable price limit at any time when the total amount of funds available at the customer's online banking terminal and entrusted frozen funds is less than or equal to zero.
If the income from compulsory liquidation is not enough to make up for the losses, commissions and other related expenses of customers, or the trading margin of customers is not enough to make up for the losses, commissions and other expenses of customers due to too little market liquidity or other circumstances, further recovery will be made from customers.