What should I do if the futures contract is not open at maturity?
Futures contracts must be closed when they expire. If investors do not close their positions, they will also be forced to close their positions by the exchange. Many investors may forget to close their positions because they forget the time. In fact, it doesn't matter if they forget to close their positions. Generally, futures companies will send text messages or call investors whose accounts are about to close. If the investor has not closed his position on the contract delivery date, the futures company will carry out compulsory liquidation.
Forced liquidation of futures refers to the forced liquidation of futures companies when futures investors fail to close their positions on time or the trading margin is insufficient and not fully paid within the specified time. In addition, when a member or customer holds more positions than the prescribed limit, or a member or customer conducts trading in violation of regulations, the futures trading platform will also carry out forced liquidation in order to prevent the trading risk from expanding.
To put it simply, forced liquidation actually means that after reaching the stop-loss point set by the investor, the order is damaged, or no stop-loss point is set in the face of losses, and it has been in a state of loss, resulting in insufficient margin for the final contract order and forced liquidation by the platform.
Futures investment risks are greater than stocks, and stocks will not lose money to the platform. Take futures as an example. When the biggest loss occurs, investors may still owe money, not only the principal but also the debt. Futures investment needs absolute professional knowledge, otherwise the tuition fee will be much higher than that of investing in stocks, and the threshold of futures investment is even higher than that of stock investment.