Futures contracts must be closed when they expire. If investors fail to close their positions, they will be forced to close their positions by the exchange. Many investors may forget to close their positions because they forget the time. It doesn't matter even if they forget. Futures companies usually send text messages or call investors who are about to close their positions. If investors have not closed their positions on the delivery date, the futures company will force them to close their positions.

What does compulsory liquidation mean?

Forced liquidation refers to the futures exchange's failure to make up the trading margin of members or customers within the specified time, or when the positions of members or customers exceed the specified limit, or when members or customers violate the rules, the exchange implements forced liquidation to prevent the risk from further expanding.