Hello, the forced liquidation system refers to the futures exchange's liquidation system for members and customers in accordance with the regulations when the deposits of exchange members or customers are insufficient and cannot be replenished in time or the positions do not meet the relevant regulations.

When a member or customer has the following circumstances, the Exchange may carry out compulsory liquidation:

1. The balance of members' reserve fund is less than 0, and it has not been replenished within the specified time.

2. A member or customer holds a position exceeding the prescribed limit and fails to close the position within the prescribed time.

3. The positions of related varieties are not adjusted to the corresponding integer times as required within the specified time.

4. Being punished by the exchange for compulsory liquidation due to violation of regulations.

5. The liquidation shall be forced according to the emergency measures of the Exchange.

6. Others should be forced to close their positions.

for instance

Lao Zhang, a corn buyer, is going to buy 50 tons of corn, but he is worried that the price of corn will rise in the future. I bought 20 corn 1809 contracts on July/0/0. Lao Zhang intends to hold the due physical delivery. However, Dalian Commodity Exchange stipulates that natural person customers are not allowed to deliver positions. Under the premise that the futures company that opened the account has not taken the initiative to close the position, the futures company or exchange will forcibly close all its illegal positions, and the corresponding losses and expenses will be borne by Lao Zhang.

Risk disclosure: This information does not constitute any investment advice. Investors should not substitute such information for their independent judgment, or make decisions only based on such information. It does not constitute any trading operation and does not guarantee any income. If you operate by yourself, please pay attention to position control and risk control.