Hello, forced liquidation refers to the compulsory measures taken by the exchange to close the position of its members and customers according to relevant regulations. The implementation of the compulsory liquidation system can stop the expansion and spread of risks in time.

There will be five situations in the Measures for the Administration of Risk Control of China Financial Futures Exchange, which stipulates that the exchange will forcibly close its position when one of the following situations occurs:

(1) The balance of settlement reserve of settlement members is less than zero, and it has not been replenished before the end of the first section;

(2) Customers and trading members engaged in proprietary business hold positions exceeding the position limit standard and fail to close their positions before the end of the first section;

(3) Being punished by the exchange for compulsory liquidation due to violation of rules and regulations;

(four) according to the emergency measures of the exchange, it should be forced to close the position;

(5) Other circumstances requiring liquidation as stipulated by the Exchange.

If it is necessary to force the liquidation, it shall be executed by the members themselves first, and the time limit shall be the first trading time after the market opening. The price of forced liquidation is formed through market transactions. If the member fails to complete the implementation within the prescribed time limit, it will be enforced by CICC.