Definition
Forced liquidation
The situation in which a customer's account is liquidated (open positions are offset) by the brokerage firm holding the account, usually after notification that the account is under-margined through margin calls.
Forced Liquidation: The situation in which a customer's account is liquidated (open positions are offset) by the brokerage firm holding the account, ...
Forced Liquidation - A nightmare for some and opportunity for others ...
Forced Liquidation - Liquidation of a customer's futures trading account by the broker after failing to meet margin calls.
Forwardation - Another term for Contango.
Thursday's selling had the indications of forced liquidations. This morning's futures show a positive open. This should be the result of recovering some of the excessive selling from Thursday as well as seeing strength in the Asian markets.
This guidance clarifies that forced liquidations are not indicative of fair value, as this is not an "orderly" transaction.
From the perspective of the owner, prospective buyers, the IRS, lenders and divorce & bankruptcy courts, the value of a business for purposes of a sale, estate planning, orderly or forced liquidation, gifting, divorce, etc, ...
 See also: Liquidation, Analysis, Open, Market, Action
  
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