in the absence of margin trading, ETF has no compulsory liquidation mechanism.

transactional open-end index fund, also commonly known as Exchange Traded Fund (ETF), is an open-end fund with variable fund share, which belongs to a special type of open-end fund.

subscription refers to the purchase of fund shares during the duration of the fund, and subscription refers to the purchase of fund shares during the fund raising period. During the fund raising period, investors can only buy funds, and after the fund raising period, they will enter the closed period of the fund. During the closed period of the fund, investors cannot purchase and redeem the fund.

it combines the operating characteristics of closed-end funds and open-end funds. investors can purchase or redeem fund shares from fund management companies, and at the same time, they can buy and sell ETF shares at market prices in the secondary market.

According to different investment methods, ETFs can be divided into index funds and actively managed funds, and most ETFs abroad are index funds. At present, ETFs launched in China are also index funds. ETF index fund represents the ownership of a basket of stocks, which refers to the index fund that is traded on the stock exchange like stocks, and its trading price and net fund share trend are basically consistent with the tracked index. Therefore, investors buy and sell an ETF, which is equivalent to buying and selling the index it tracks, and can obtain basically the same income as the index. Usually, a completely passive management method is adopted, aiming at fitting an index, which has the characteristics of both stocks and index funds.

Consequences of forced liquidation of p>etf option:

The transaction in which the option is margin can be settled every day. If the investor's fund balance is negative, the margin in the investor's margin account can be divided into two parts. The first is to maintain the twentieth margin settlement reserve. Maintaining the margin directly participates in the initial establishment and maintenance price of the position, which is the situation of the margin that has been occupied.

the settlement reserve is used for daily debt-free settlement in addition to maintaining the margin, that is, when the margin is insufficient, the securities company will add a notice of margin at this time, and if the investor does not have insufficient margin, it will be forced to close the position.

Different from the right to buy options, selling and opening positions means taking on obligations, so selling and opening positions requires investors to pay enough margin to open positions, so there is a risk of being forced to close positions due to insufficient margin during daily trading.

For investors, forced liquidation means the option of the permanently closed part, and there is no way to continue to enjoy the gains and losses of this part. Therefore, I hope that investors can pay more attention to the changes in their account balance and ensure that they can make up the funds when the funds are insufficient.

if the margin is maintained for the obligor's position according to the settlement price of the contract on that day after the close of each day, but if the investor's margin cannot be replenished before 9: on the next trading day, then the option management institution will require the investor to close the position by himself or forcibly. If there is no securities that can be closed or replenished with the margin and the target before 11: 3 the next day, the option management institution will directly perform forced liquidation for the remaining part that has not been completed beyond the time limit for self-forced liquidation.

Therefore, investors should always pay attention to the balance of capital account in their own accounts, and pay attention to the ex-rights, ex-dividends, share allotment and dividends of relevant underlying securities, and make preparations to make up the margin in advance.