Forced liquidations generally occur after warnings have been issued by the broker regarding the under-margin situation of an account. Should the account holder choose not to meet the margin requirements, the broker has the right to sell off the positions.
Investment dictionary. Academic. 2012.
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forced liquidation — UK US noun [C or U] ► LAW COMPULSORY LIQUIDATION(Cf. ↑compulsory liquidation) … Financial and business terms
Liquidation value — is the likely price of an asset when it is allowed insufficient time to sell on the open market, thereby reducing its exposure to potential buyers. Liquidation value is typically lower than fair market value. Unlike cash or securities, certain… … Wikipedia
Liquidation — When a firm s business is terminated, assets are sold, proceeds pay creditors and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a Long or short position. Related: buy in, evening up, offsetliquidity.… … Financial and business terms
liquidation — Occurs when a firm s business is terminated. assets are sold, proceeds are used to pay creditors, and any leftovers are distributed to shareholders. Any transaction that offsets or closes out a long or short position. Related: buy in, evening up … Financial and business terms
liquidation — noun ADJECTIVE ▪ compulsory (BrE), forced (AmE), voluntary VERB + LIQUIDATION ▪ be forced into, be placed in (BrE), be put into (BrE), go into … Collocations dictionary
liquidation — The act or process of settling or making clear, fixed, and determinate that which before was uncertain or unascertained. Payment, satisfaction, or collection; realization on assets and discharge of liabilities. To clear away (to lessen) a debt.… … Black's law dictionary
forced — adj. Forced is used with these nouns: ↑bravado, ↑calm, ↑confession, ↑conscription, ↑conversion, ↑deportation, ↑entry, ↑evacuation, ↑eviction, ↑exile, ↑expulsion, ↑ … Collocations dictionary
liquidation — Synonyms and related words: abolishment, abolition, acquitment, acquittal, acquittance, agiotage, amortization, amortizement, annihilation, annulment, arbitrage, assassination, binder, bloody murder, bumping off, buying in, cash, cash payment,… … Moby Thesaurus
forced sale — A sale that has to take place because it has been ordered by a court or because it is necessary to raise funds to avoid bankruptcy or liquidation … Big dictionary of business and management
compulsory liquidation — ➔ liquidation * * * compulsory liquidation UK US noun [C or U] (also forced liquidation) ► LAW a situation in which a company must stop operating and sell all its assets in order to pay its debts: force/place/put into compulsory liquidation » The … Financial and business terms