Forced liquidation refers to the behavior of forced liquidation in futures trading to prevent further risk expansion because the margin is insufficient within the specified time and not replenished in time. For example: A bought a stock with 6.5438+0 million yuan, and then raised 6.5438+0 million yuan to continue to buy a stock, which is 20,000 yuan. The stock then fell to 654.38+00000 yuan, touching the liquidation line of the financing platform, and A still could not make more money to cover the position. At this time, the financing platform will forcibly sell shares and keep the principal of 654.38+00000 yuan, and A will lose all.

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After the company is forced to level off, the remaining funds are the total funds MINUS your losses. There are many reasons for compulsory liquidation in daily futures trading, in addition to the above-mentioned insufficient margin, there are also violations of trading position restrictions.

There are many reasons for compulsory liquidation in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions and other irregularities, temporary changes in policies or trading rules, etc. In the standardized futures market, it is most common that customers are forced to close their positions because of insufficient trading margin.

Under normal circumstances, the forced liquidation of futures is caused by insufficient margin. At this time, in order to avoid forced liquidation, it is best for users to make up the margin in advance in case of insufficient margin to avoid liquidation. It is worth noting that in addition to the risk of compulsory liquidation, futures investment also faces other risks, including delivery risk, brokerage risk, liquidity risk and market risk.

Forced liquidation is because users use leverage strategy in futures trading. For example, if they invest in 10 yuan, they can invest with the leverage of 1: 10. At this point, users can buy futures with 100 yuan, and when the proportion exceeds 10% after the decline, they will be forced to close their positions, that is, they can only compensate the investors' money, but not the other money.

Futures is a standardized tradable contract based on some popular products, such as cotton, soybeans, oil and financial assets, such as stocks and bonds. Therefore, the subject matter can be commodities (such as gold, crude oil and agricultural products) or financial instruments. The places where futures can be traded in China are Zhengzhou Commodity Exchange, Shanghai Futures Exchange, China Financial Exchange and Dalian Commodity Exchange.