Force Sell is a situation in which an investor loses control when his assets are reduced too much, at which point the securities company will intervene to limit the risk rate.
Force Sell occurs depending on 3 main quantities: margin rate, warning margin rate and release margin rate (or minimum margin rate).
Before being Forced Sell, the investor’s account will receive a notification that the margin ratio is about to reach the processing threshold, encouraging investors to add more capital or sell off shares to increase the margin ratio. prescribed level.