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What is compulsory liquidation? Does it have an impact on investors?
In our life, we often buy some stocks or some funds to improve our economic efficiency. But buying stocks and funds is risky, especially for some investors who are forced to close their positions. However, many people don't know what compulsory liquidation means. If forced liquidation has been caused, will it affect investors?

What is compulsory liquidation? First of all, forced liquidation means that some investors have lost the option of liquidation forever, which means that they can no longer enjoy this part of the rights or losses. Therefore, for investors, if they want to avoid being forced to close their positions, they should always pay attention to the balance of their accounts. And when this balance touches a certain bottom line, you need to invest money to supplement this balance immediately. Only in this way will it not be forced to close the position, so if someone is forced to close the position, will it have a certain impact on him?

If investors are forced to close their positions, the risks of the stocks or funds they bought at that time will gradually expand and spread. In this way, they can't get benefits at the best price, or they are likely to suffer losses for themselves. Then for investors, their assets and some credit records will have multiple charging standards. If you default, it will also affect your credit status, so in order to ensure that you get these rights and interests, you need to pay attention to your liquidation status.

Know your financial situation because once you are forced to close your position, it will not only affect your funds, but even lose your credit, so when we invest. You must be aware of this, so that we can protect our account whether we are profitable or losing money. At the same time, being able to enjoy these rights and interests is also very good for yourself.