Received a Forced Liquidation Notice? 5 Steps to Respond Quickly

Received a forced liquidation notice!!!

Seeing that message makes your heart race for many investors.

There are three urgent things to check.

Retail investor:

"I got the message, can I just deposit tomorrow?"

Retail investor:

"Which account and how much should I transfer?"

Follow the steps below immediately, presented in order.

What to check first

→ Step 1: Log into the broker app and check the 'collateral ratio' and 'scheduled forced liquidation time'.

→ Step 2: Confirm the outstanding deficit (or shortage) amount as a number.

→ Step 3: Check the deposit deadline time, because automatic sell orders will trigger after that time.

These three are the core items.

Collateral ratio means the minimum ratio the broker requires against loans or margin relative to held stocks.

Outstanding deficit means unsettled trade amounts or insufficient cash balance.

Where to find it in the broker app

Log in → account inquiry → enter 'collateral management' or 'forced liquidation' notification screen.

Collateral ratios by stock and the overall account collateral ratio are shown separately.

Scheduled forced liquidation times appear in alerts or notices.

How and to which account to deposit

Transfer to the broker's official deposit account.

Make sure the depositor name and account number are exact so the deposit is reflected automatically.

If urgent, use instant transfer (fast transfer) in your bank app.

What if you miss the deposit deadline

Automatic sell timing varies by broker.

After the deadline, the broker will sell some or all held stocks.

If problems persist, call customer service to request post-handling or confirmation of remaining balances.

Procedure if you sell yourself

Selling first lets you have more control over the selling price than forced liquidation.

Selling steps: 1) Quickly choose stocks to sell at opening or market price / 2) Enter quantity and market order / 3) Confirm execution and recheck balance.

Be cautious because market orders carry price fluctuation risk.

Should you keep records and documents?

Capture deposit receipts or bank transfer confirmation screens.

They may be required for customer service inquiries or filing complaints later.

So, what to do first

→ 1. Log into the app and check collateral ratio, outstanding deficit, and scheduled forced liquidation time.

→ 2. Immediately transfer to the broker's designated account with the correct depositor name.

→ 3. If you cannot deposit, sell at market yourself to cover the shortage.

Please use this as reference only.

PickStock 💡

※ Figures vary by broker, so confirm exact deadlines and ratios in your broker app or with customer service.

※ If deposits fail or forced liquidation occurs, prepare post-settlement documentation and receipts.

※ This article is for information only and is not investment advice.