1, forced liquidation due to failure to fulfill the obligation of additional margin. According to the rules of the Exchange, the futures trading is subject to the margin system, and each transaction must pay a certain percentage of the margin. When the market changes unfavorably, that is, when the market changes reversely, and the delivery month enters, members or customers should also add margin according to the trading rules and the contract. If the member or customer fails to fulfill the obligation of additional margin within the specified time, the trading ownership will forcibly close the position held by the member or brokerage company.

2. Forced liquidation due to violation of regulations. If a member or customer violates the trading rules of the exchange, the trading ownership will be forced to close the position and violate the trading rules. It mainly includes: exceeding positions in violation of position restrictions; Failing to report or making a false report in violation of the large household reporting system; Carry out futures business for those who are prohibited from entering the market; Brokerage companies engage in self-operated business; Manipulate the market together; And other violations that require compulsory liquidation.

When the balance of the settlement reserve fund of a member is less than zero, there are three kinds of compulsory liquidation that are not replenished within the specified time:

First, when only the proprietary account defaults, the proprietary account shall be closed in the order of the total contract positions. If the settlement reserve is still less than zero after the forced liquidation, the investors in their agency accounts will be moved;

Second, when only the brokerage account defaults, it will be compensated by the balance of settlement reserve and the liquidation amount of the self-operated account, and then the position in the brokerage account will be leveled according to certain principles;

Third, when both the proprietary account and the brokerage account default, the order of forced liquidation is proprietary account first, then brokerage account. If the settlement reserve is greater than zero after forcibly closing the brokerage account position, investors will be passive.

Forced liquidation when the position exceeds the position limit: when this happens to only one member, close the position in the self-operated account first, and then close the position in the brokerage account. The positions held in the brokerage account shall be determined according to the ratio of the number of members who exceed the positions to the positions held by members. When there are multiple members in this situation, members with a large number of backlogs are preferred as the object of forced liquidation.