If an investor invests in tiered fund B, a discount on the B share of the tiered fund may cause B share holders to suffer a larger loss. Since the B share of the tiered fund has a leverage effect, Investors may be forced to liquidate their positions. Under normal circumstances, the probability of a fund being forced to liquidate is very low.

Forced liquidation often occurs in the futures market. It means that the insufficient trading margin of a futures exchange member or customer has not been replenished within the specified time, or when a member or customer's position exceeds the prescribed limit, or when a member or customer violates the rules, the exchange implements measures to prevent further expansion of risks. Forced liquidation. The forced liquidation system is a risk management system that cooperates with the position limit system and the price limit system. When the trading margin of an exchange member or customer is insufficient and is not replenished within the prescribed time, or when a member or customer's position exceeds the prescribed limit, or when a member or customer violates a rule, the exchange will, in order to prevent the risk from further expansion, impose a penalty on the member or customer. Open positions held will be subject to mandatory liquidation.

Response time: 2021-06-15. For the latest business changes, please refer to the official website of Ping An Bank.

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