When the customer has both insufficient funds and illegal funds, the illegal funds will be executed first, and the deposit amount released by the illegal funds will be incorporated into the calculation of the customer's account equity. The recalculated balance of available funds will be used as the basis for enforcing insufficient funds. If the available funds of customers are positive after recalculation, leveling will not be forced; If the customer's available funds are still negative after recalculation, it will continue to force leveling until the available funds are positive.
If the customer is forced to close the position due to insufficient margin, and there are multiple contract months in the account, including both commodity futures and financial futures, hedging and speculative positions, which contract will the futures company close first?
There are both hedging and speculation. Generally, the speculation is closed first, and the available funds are still insufficient after implementation, and then hedging is implemented; When a customer's account has multiple contract months, it is generally based on the risk control degree or contract agreement announced by the futures company in advance, and there are usually two principles: one is the principle of position ranking, and the other is the principle of position loss ranking.
If the forced liquidation cannot be completed on the same day due to price limit or other market reasons, the remaining strong positions can be postponed to the next trading day to continue the forced liquidation until the forced liquidation is completed, and the above principles will still be followed.
When the futures price is at the closing price, futures companies generally use the closing price limit order to close their positions, which has two advantages compared with the market price order. First, relax the number of orders placed at one time. Second, if you can't close the transaction immediately, it will become a closing price pending order, enter the entrustment queue, increase the probability of closing the transaction, and qualify for compulsory lightening.