The liquidation line means that in the process of capital matching cooperation, when the loss of the existing securities account and the initial securities account reaches a certain proportion, the capital has the right to forcibly liquidate the position according to the contract.
This ratio is the flat warehouse line (generally 1:3 with the flat warehouse line is 85%).
Is often the emergence of extreme market, traders did not make up the margin in a timely manner.
This time will lead to early release, the investor forced liquidation.
The levelling line can be understood as a strong stop loss line, which is a mandatory risk control measure to prevent capital losses.
The role of Pingcang line is not only to help traders stop, timely step on the brakes, but also a way of capital management.