Forced liquidation refers to the trading behavior that one party uses the advantage of capital or warehouse receipt to guide the market to move unilaterally, resulting in the other party's continuous losses, and finally has to cut its position. Generally, it can be divided into two forms: multiple forced positions and multiple forced positions.

Too many short positions: market manipulators use the advantages of funds or physical objects to sell a large number of futures contracts in the futures market, which greatly exceeds the ability of many parties to undertake physical objects. As a result, the futures market price has fallen sharply, forcing speculative bulls to sell contracts at low prices and admit losses, or be fined for breach of contract because of their financial strength, thus making huge profits.

Short positions: In some small varieties of futures trading, when market manipulators expect that the spot commodities available for delivery are insufficient, they will build enough long positions in the futures market by virtue of their financial advantages to raise the futures price, and at the same time buy and hoard a large number of physical objects available for delivery, so the prices in the spot market will rise at the same time. In this way, when the contract is close to delivery, the chasing members and customers will either buy back the futures contract at a high price and claim for liquidation; Either buy the spot at a high price for physical delivery, or even be fined for breach of contract for not handing over the physical goods, so that long positions can make huge profits from it.