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Why do futures companies sometimes carry out compulsory liquidation in call auction stage?
In practice, futures companies rarely close their positions with investors in call auction. Only when investors fail to make up the margin in time according to the notification requirements of the futures company after settlement on the previous trading day before the opening of the market on the same day, resulting in a serious shortage of margin and facing greater risks, in order to control risks and prevent overdrafts or positions, futures companies sometimes forcibly close investors' positions in the call auction stage. Under normal circumstances, futures companies will force investors to close their positions in the continuous bidding stage after the opening of the market.

According to the second paragraph of Article 35 of the Regulations on the Administration of Futures Trading, "when the customer's margin is insufficient, it shall add the margin in time or close the position on its own". As for the time to increase the margin or close the position on its own, the Regulations on the Administration of Futures Trading does not specify it, but it is freely negotiated by both futures companies and investors. In practice, futures companies generally refer to Article 44 of the Guidelines for Futures Brokerage Contracts issued by China Futures Association, and agree on risk control measures with investors. Article 44 stipulates: "Party B shall add the margin in time before the market opens on the next trading day, or close the position by itself immediately after the market opens. Otherwise, Party A has the right to forcibly close part or all of Party B's open positions until Party B's available funds are ≥0 ".