When ordinary customers invest in futures, their rights and interests (total investment) can be divided into two parts, 1. Margin occupation of purchasing futures contracts. 2. Available funds. When the available funds are less than 0, the futures company will ask customers to add margin. If the customer fails to pursue the insurance in time, the futures company will force the liquidation for the customer to prevent the explosion or even penetration.

Under certain conditions, the exchange will also carry out compulsory liquidation of customers. There are some cases: customers forget to close their positions because they are not ready for delivery, or individual investors do not close their positions before entering the delivery month.

If the company forces the liquidation of the customer, it means that the customer is in a loss state and the available funds are zero due to the loss. After compulsory liquidation, the margin will deduct more losses after liquidation. If the exchange forcibly closes its position, the part earned will go to the exchange, and the losses will be borne by the customers themselves.