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What does it mean to be liquidated due to insufficient futures margin? I don't want liquidation, please elaborate.
The forced liquidation of customers by futures companies refers to the forced liquidation of customers due to insufficient funds and backlog. For example, if you originally bought 100 lots of soybeans, the margin ratio was 10%, and the position occupied 300,000 yuan. Now, due to the drastic changes in the market, the exchange has increased the margin ratio to 15%, and your 300,000 yuan can only maintain 80 positions, so either you add additional funds to maintain your 100 position, or the futures company will close 20 lots of soybeans. Compulsory liquidation refers to the compulsory measures taken by the exchange to liquidate the positions of members and customers in accordance with relevant regulations. The implementation of the compulsory liquidation system can stop the expansion and spread of risks in time.