Futures have a compulsory liquidation system. When the investor's margin is below a certain level, it will be forced to liquidate by the exchange. This is the case with futures, so is there a more complicated compulsory liquidation system for option trading than futures? Let's get to know each other.

Will the option be forced to liquidate?

Options are divided into buyers and sellers. In option trading, the buyer does not need to pay the deposit, so there is no risk of forced liquidation. Having said that, the buyer has the right to zero the risk. As far as option sellers are concerned, because they need to pay a certain margin, when the margin is lower than a certain level, they will be forced to close their positions by the exchange.

In addition, both buyers and sellers will be forced to close their positions by the exchange as long as they violate the rules, including but not limited to these acts: exceeding positions in violation of position restrictions, failing to report or making false reports in violation of the declaration system of big in and big out, investors actually engaging in self-operated business for the market, brokerage, and manipulating the market.