Futures and stock funds belong to investment and wealth management products, but there are still great differences. For example, there is no strong level in the stock or fund market, because strong level is a unique term and operation in the futures market. Many people only know the concept of strong level when they first come into contact with futures, and don't know what it means.

What does a strong futures market mean?

Strong futures three boards means that futures positions go through three daily limit boards or daily limit boards continuously, and they can be forced to close positions under certain conditions. Forced liquidation, that is, forced liquidation, refers to a third person other than the position holder, usually a futures exchange or futures company, who forcibly liquidates the position of the position holder, also known as being liquidated or being liquidated.

Strong futures can be short or long. For example, an empty position can be closed at the daily limit price after three consecutive daily limit. If there is no transaction that day, there will be liquidation as long as the third daily limit. After three consecutive daily limit, bulls can close their positions by hanging the price of the daily limit. If there is no deal on that day, as long as there is a liquidation order on the third daily limit.

Reasons for a strong future:

1 The customer fails to add the trading margin in time, and the proportional relationship between the strong margin and the position margin changes with the margin ratio of the exchange.

If the position is not adjusted to the corresponding integer multiple within the specified time, it will be forced to close the position by the exchange.

3. Forced liquidation due to violation of regulations, mainly including: exceeding positions in violation of position restrictions; Failing to report or making a false report in violation of the large household reporting system; Carry out futures business for those who are prohibited from entering the market; Brokerage companies engage in self-operated business; Manipulate the market together; And other violations that require compulsory liquidation.

4 forced liquidation due to temporary changes in policies or trading rules, trading rules are often modified due to temporary regulations of policies or regulatory authorities, or temporarily unable to be implemented normally.

After reaching the condition of strong liquidation, if the customer does not liquidate the position by himself, then the exchange will forcibly liquidate the position. After being forcibly closed, the remaining funds are the total funds MINUS your losses, and generally there will be a part left. Therefore, in the state of profitable futures, there is mainly no need to be forced to close the position, because if you close the position yourself, you will get less money.