In other words, the investor's right to operate is enforced by the futures company, some or all of the investor's positions are written off, and the floating loss of the investor becomes a real loss.
The reason is that investors can't add margin in time and can't meet the minimum margin requirements of futures companies. When the futures company sees the unfavorable situation expanding, according to the contract agreement between the two parties, the futures company will operate to reduce the investor's position and release the deposit to meet the prescribed standards.
If you don't want to evolve into a step of losing the right to operate, you must strictly manage yourself, actively resolve risks, and keep the bottom line of the minimum margin requirement.
Literally, it is not difficult at all, that is, when losing money, take the initiative to close some positions, that's all.
However, human nature is often unwilling to admit defeat. I always feel that there is no problem in the direction of my operation, and the market will always return to the direction I recognize.
"Hope is the enemy of operation" and "The market is always right".
Especially in the margin trading of futures, once the position is too heavy, the room for manoeuvre will become cramped, and position control will become very important.
Caution is the parent of safety. Lightweight warehouses or machinery perform mitigation operations without personal subjective will.
The market, or the market, that is, the settlement price, determines the size of its own position, rather than being unwilling or inaction in the face of floating losses.
This requires training, and it is human nature not to accept losses.
The same is true in the stock market with full margin (all self-owned funds). How many floating loss accounts? ! It's just that there is no compulsory liquidation operation of securities companies, that's all! Covered up the fact of the loss.
Seeing the micro-knowledge, investors who can control themselves can not explode their positions.