Insurance call means that the securities registration and clearing company transfers securities and transfers funds according to the liquidation results. Insurance call is also called delivery. Insurance recovery is similar to liquidation. The securities registration and settlement company responsible for insurance recovery is responsible for handling settlements with securities companies, and the insurance recovery securities company handles settlement with customers. There is no settlement relationship between securities registration and settlement companies and securities company customers.

According to the transaction clearing rules, on the day when a securities company conducts securities transactions on behalf of an investor, the insurance company must first handle the clearing business with the stock exchange after the market closes. The spread settlement rules will settle the difference in the amount of buying and selling securities; then each securities company will settle the price of buying and selling securities for the investors it represents.

Extended information:

Under normal circumstances, liquidation will not occur under the daily liquidation system and forced liquidation system. For example, since the launch of my country's stock index futures, there has never been an incident of traders liquidating their positions. This is because stock index futures have never had a price limit. Once a trader's margin is insufficient and cannot be replenished in time, the futures company will immediately take liquidation measures. , it can still prevent the liquidation situation to the greatest extent.

The price limit range in commodity futures is relatively small, and it is entirely possible for the price limit to occur. However, since the margin ratio is usually greater than 150% of the price limit range, the first limit is usually unlikely to occur. Just a warehouse explosion accident.

However, if there is a continuous limit in the same direction, the futures company's forced liquidation measures for traders with insufficient margin may not be effective. In this case, a liquidation may occur. situation. For example, after the National Day holiday in 2008, affected by the global financial crisis, commodity futures fell to the daily limit on a large scale. Some traders who held long orders were unable to close their positions, and eventually their positions were liquidated.