Compared with stocks, the futures trading system is more flexible, and many investors have the idea of investing in futures. However, we should know that the risk of futures is higher than that of stocks, and the risk of forced liquidation is one of the main risks of futures, so when will futures be forced to liquidate?

When will futures be forced to close their positions?

Futures will be forced to close their positions when the margin is insufficient, and will be forced to close their positions on the last trading day.

Insufficient margin 1: futures are traded with margin. When the margin loss of investors is almost the same, the futures company will add margin to investors. If the margin cannot be added within the specified time, the company has the right to force liquidation.

Last trading day: ordinary investors are not allowed to enter the delivery date of commodity futures. Once the futures reach the last trading day, the exchange will force investors who are not qualified for delivery to close their positions. Not all futures prohibit ordinary investors from entering the delivery date, but stock index futures allow ordinary investors to deliver.