Futures use margin trading, and generally participating investors only need to use margin to participate in trading. At the same time, the futures market is also very risky, especially when the unilateral market comes, it is easy for some positions in the opposite direction to backfire. For example, three boards are solid and flat. Let's introduce it to everyone.

What is the law of futures three boards being strong and flat?

The main purpose of "three strong boards" is to protect investors from discontinuous losses under extreme market conditions, and there is an exit mechanism. The rule of "three strong boards": if the opening fails in the last five minutes, customers with three consecutive unilateral boards will close the market on the fourth day, hang up the order on the third day, and find the most profitable hedge with you on the fourth day, thus reducing the position of futures contracts.

The so-called forced liquidation refers to the forced liquidation of the position of the holder by a third person other than the holder (such as a futures exchange or futures company), also known as being liquidated or being liquidated. Simply put, if your futures position goes through three daily limit boards or daily limit boards in a row, you can force the liquidation under certain conditions.

How to clinch a deal with three boards and strong flats?

After three consecutive daily limit, you can close the short position at the daily limit price. If there is no deal on that day, as long as you pay the closing price at the third daily limit, the exchange will be responsible for finding the most profitable long position for you and clearing the position for you at the daily limit price.

After three consecutive daily limit, bulls can close their positions by hanging the daily limit. If they don't make a deal that day, as long as you hang the closing order on the third daily limit, the exchange will be responsible for finding the most profitable short position for you and clearing the position at the daily limit price.

There are many reasons for the forced liquidation in futures trading, including the customer's failure to add the trading margin in time, and the proportional relationship between the strong margin and the position margin changes with the exchange margin ratio. Because the current judicial interpretation stipulates the principle of comparison, and the agreement of the parties in the futures brokerage contract is not comprehensive and inconsistent, how to determine the applicable conditions and consequences of forced liquidation in judicial practice is not uniform.