In leveraged trading, we often encounter a problem. In the face of extreme market, we were informed by the relevant companies to pursue insurance, and then said that if we did not replenish the pledge, we would force the liquidation. What does Qiangping mean here? How will this change our account?

What does Qiangping mean?

Forced liquidation means forced liquidation, that is, if the customer's margin is not replenished within the specified time, then the exchange or futures company has the right to sell all the customer's positions. Simply put, we trade futures or foreign exchange. If there is no money in the account, all the contracts we hold will be sold.

Generally speaking, strong leveling is a kind of risk control, and this level of risk is generally divided into three levels: chasing insurance, strong leveling and warehouse penetration. We know that futures and foreign exchange transactions are margin transactions, so in actual transactions, we pay a small amount of money to buy the whole commodity, and most of the money has been paid by the relevant companies on our behalf. Therefore, when the market fluctuates, when we lose our principal at a certain risk ratio, we will be chased; When it is close to the principal loss, it will be leveled; When we still owe money to the company after all the losses, we call it a warehouse. At this time, we still need to accept the company's recovery.

Therefore, when we conduct leveraged trading, we must remember to control the risks and not operate with the gambler's psychology. Otherwise, if we are forced to close or break the position, then we will lose everything.