Breaking positions is also called forced liquidation, and it is also called being cut/cut/breaking positions. According to the different subjects of compulsory liquidation, compulsory liquidation can be divided into exchange compulsory liquidation and brokerage compulsory liquidation. Commonly used in spot gold and futures trading.

There are two kinds of forced liquidation in futures: the forced liquidation of futures companies by exchanges and the forced liquidation of customers by futures companies. According to the different subjects of compulsory liquidation, compulsory liquidation can be divided into exchange compulsory liquidation and brokerage compulsory liquidation.

Extended data:

Execution procedures for compulsory liquidation:

1, pay attention.

The Exchange sends a compulsory liquidation request to relevant members in the form of the Notice of Compulsory Liquidation (hereinafter referred to as the Notice). Unless specially sent by the Exchange, the notice shall be sent together with the settlement data of the day, and relevant members can obtain it through the member service system.

2. Implementation and confirmation.

After the opening of the market, the relevant members must first close their positions by themselves until they meet the requirements for closing positions. The implementation results shall be audited by the exchange. If the compulsory liquidation period of members is exceeded and the execution is not completed, the exchange will directly execute the compulsory liquidation of the rest; After the compulsory liquidation is completed, the exchange will record the execution results and file them; The result of forced liquidation is sent with the transaction record of the day, and relevant members can obtain it through the member service system.

3. The price of forced liquidation is formed through market transactions.

Due to price limit or other market reasons, the forced liquidation cannot be completed within the specified time limit, and the remaining positions can be postponed to the next trading day to continue liquidation, and the principle of forced liquidation will still be implemented until the liquidation is completed.

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