The meaning of explosion and liquidation: liquidation is a term derived from commodity futures trading, which refers to the trading behavior of one party in futures trading to cancel the futures contract bought or sold before. Closing a position is a general term for selling stocks bought by bulls or buying back stocks sold by bears in stock trading. Forced liquidation is also called forced liquidation, and it is also called being cut/cut/exploded. According to the different subjects of compulsory liquidation, compulsory liquidation can be divided into exchange compulsory liquidation and brokerage compulsory liquidation. Commonly used in spot gold and futures trading.

The content of this article comes from: The New Encyclopedia of Financial Law (Fifth Edition) edited by China Law Publishing House.