Forced liquidation refers to the compulsory measures to liquidate the positions of members or customers in accordance with relevant regulations, with the aim of controlling futures trading risks. Forced liquidation is divided into two situations:

First, the exchange forcibly liquidates its members (clearing members of futures companies or non-futures companies);

Second, the futures company forced the liquidation of the positions held by customers.

Extended answer:

Futures companies have special risk control personnel to monitor the risk of customers' positions in real time. When the available funds other than the margin are negative, the futures company will inform the customer to add the margin or close the position by himself. If the customer does not handle it by himself, the price will continue to change in a direction that is not conducive to the position, and the futures company will forcibly close the position according to the specific criteria of compulsory closing.