What do you mean by strong contract?
A strong contract refers to a futures exchange or futures brokerage company that forcibly closes the position of the holder, also known as being closed or closed. For example, after you buy a futures, but you lose money, the margin is gone. If you can't continue to add margin, you will be forced to close your position by the futures company.
Simply put, a strong futures level means that the customer's transaction is occupied by too much funds, resulting in insufficient funds available in the account, or it has become negative. Futures companies will call investors first to remind them that they don't have enough funds and need additional funds. However, if the customer fails to increase the capital as required and the transaction continues to lose money, the futures company will take the initiative to close the position.
Because the futures market adopts the trading system of margin, exchanges and futures companies have the right to forcibly close their positions for customers who have not added margin within the prescribed time limit, in order to prevent and control the risks of customers and futures market.
Under any of the following circumstances, the ownership of the transaction will be forced to close:
1. The positions of customers and trading members engaged in self-operated business exceed the position limit standard and have not been closed within the prescribed time limit;
2. Being punished by the exchange for compulsory liquidation due to violation of regulations and breach of contract;
3, according to the emergency measures of the exchange should be forced to close the position;
4. Other circumstances that should force liquidation.
After reading the above introduction, I believe everyone has a deeper understanding of the contract. Generally speaking, there will be no forced liquidation in the stock market unless you add leverage, but it is not uncommon for futures to be strong.