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.

When the balance of the settlement reserve fund of a member is less than zero, there are three kinds of compulsory liquidation that are not replenished within the specified time:

1. When only the self-operated account defaults, the positions of the self-operated account will be closed in the order of the total positions in the contract. If the settlement reserve is still less than zero after the forced liquidation, the investors in their institutional accounts will be transferred.

2. When only the brokerage account defaults, the balance of settlement reserve and the closing amount of the self-operated account are used to make up for it, and then the positions in the brokerage account are closed according to certain principles.

3. When both the proprietary account and the brokerage account default, the order of forced liquidation is proprietary account first, then brokerage account. If the settlement reserve is greater than zero after forcibly closing the brokerage account position, investors will be passive.

Forced liquidation when the position exceeds the position limit: when this happens to only one member, close the position in the self-operated account first, and then close the position in the brokerage account. The positions held in the brokerage account shall be determined according to the ratio of the number of members who exceed the positions to the positions held by members. When there are multiple members in this situation, members with a large number of backlogs are preferred as the object of forced liquidation.

Investors overstock, forcibly liquidate their positions; If an investor holds positions in multiple members, the member shall be selected for compulsory liquidation according to the order of the number of positions from large to small. If both members and investors exceed positions at the same time, the investors who exceed positions shall be closed first, and then the positions shall be closed according to the method of members exceeding positions.