How to force the liquidation of futures?
Futures will be forced to close their positions in two situations:
1 When the market is unfavorable and investors' margin is insufficient, investors may often face the problem of additional margin. If they fail to make up the margin within the specified time, they will be forced to close their positions according to the regulations, which may bring huge losses to investors.
Many futures do not allow investors who are not qualified for delivery to enter the delivery date, so the exchange will carry out forced liquidation on the last trading day. There are also some futures that allow ordinary investors to enter delivery dates, such as stock index futures.
For the first case, it is necessary to focus on position management, because even if the margin is insufficient and forced liquidation occurs, the actual loss will not be great on the premise that the position is not large; For the latter, always pay attention to the last trading day of futures.