1. In the investment of spot silver and spot gold, due to the margin trading system, when the investor's margin level is lower than the standard account funds, in order to ensure that the risk will not expand further, the system will execute the order to close the position.
For example, when the advance payment ratio of the investment is less than 50%, the system is a forced liquidation account, and investors can query the advance payment ratio in the "Terminal-Transaction" of the MT4 trading platform. Prepayment proportion = net value/used prepayment.
2. In gold futures trading, forced liquidation refers to the measures taken by the exchange to close its relevant positions when its members and customers violate the rules. For example, when a member or customer is punished by the exchange for compulsory liquidation due to violation of regulations, or fails to adjust his position to the corresponding integer multiple as required within the specified time, he will be forced to liquidate his position. Because there are many regulations on forced liquidation in domestic gold futures, please pay attention to the requirements on forced liquidation in gold futures contracts for details.
3. Other reasons such as the new policy, in precious metal trading, in addition to the above two possible reasons for forced liquidation, there are also cases of forced liquidation due to temporary changes in policies or trading rules. This often happens in previous years, and trading rules are often modified because of the temporary regulations of policies or regulatory authorities, or they can't be implemented normally for the time being, but the probability of this situation is very small now.