I believe that for investors who are buying futures, futures loss must not be a strange term, right? But in addition, the futures we buy may also be forced to close their positions. The following is the forced liquidation of futures brought by Bian Xiao. I hope it will help you.
Under what circumstances will futures be forced to close positions?
When the deposit is insufficient to deduct the loss 1. Futures are traded on margin. For example, when an investor establishes a future positions, the deposit is 6,543,800 yuan, and the deposit ratio is 654.38+ 00%. When the futures price fluctuates reversely by 10%, the investor will lose the principal of 10000 yuan, and will be forced to close the position at this time.
2 near the delivery month or delivery date. Take China Futures Exchange as an example:
1. Dashang Institute and Zhengshang Institute: Individual customer positions are not allowed to enter the delivery month. If they still hold positions in the delivery month, they will be forced to close their positions.
2. Last installment: Individual customers can hold positions until the last trading day and close their positions before the closing of the last trading day.
The compulsory liquidation system means that when the trading margin of members or customers of the futures exchange is insufficient and not replenished within the specified time, or when the positions of members or customers exceed the specified limit, or members or customers violate the rules, the exchange implements the compulsory liquidation system to prevent the risk from further expanding.
Under what circumstances will futures be forcibly closed?
Generally, the following situations will be leveled.
1. When there is a loss in the account and the available funds have been exhausted, which is lower than the margin standard of the futures company. Futures companies will contact customers by telephone, SMS, email, etc. Inform the risk and advise customers to close their positions or deposit themselves within the specified time. However, if the customer fails to close the position within the specified time or save his own money, or it is too late to give a second notice when there is an extreme market, he will also forcibly close the position.
2. Failing to hold positions to the delivery month as required by the Exchange.
Among them, Dashang Institute and Zhengshang Institute do not allow natural persons to hold positions to enter the delivery month. A few days before the last trading day one month before the delivery month, futures companies usually call customers to remind them that they are about to expire and close their positions as soon as possible. Otherwise it will be squashed.
The position required to enter the delivery month in the previous period is an integral multiple of the delivery unit.
3. The customer's position exceeds the number of positions limited by the transaction. This kind of situation is generally not encountered by natural person customers.
4. In addition, there are some other extreme situations, such as customers violating laws and regulations, or extreme market three-board exchange agreement liquidation and so on.
The first two situations basically account for 95%, and the latter two situations are generally not encountered.
Under what circumstances will futures trading be forced to close positions?
1. The investor's account equity is lower than the margin standard of the exchange or futures company, and the margin is not replenished in time within the specified time.
2. In the case of limited positions in the futures exchange, investors' positions exceed the limit and do not meet the standard of limited positions.
3. Investors who fail to hold positions as required in the delivery month will be forced to close their positions. Among them, natural person investors targeted by Dashang Institute and Zhengshang Institute cannot hold positions to enter the delivery month; The last energy period requires that the delivery month of the position input be an integer multiple of the delivery unit.
4. Forced liquidation by the exchange for violation of laws and regulations.
5. The futures exchange shall carry out compulsory liquidation according to the emergency measures.