Closing position refers to the behavior of futures traders buying or selling futures contracts with the same variety, quantity and delivery month, but in the opposite direction. Simply put, it means "sell what they bought and buy what they sold."

The whole process of futures trading can be summarized as opening positions, holding positions, closing positions or physical delivery. Opening a position, also known as opening a position, refers to the new purchase or sale of a certain number of futures contracts by traders. Buying and selling a futures contract in the futures market is equivalent to signing a forward delivery contract. If traders keep futures contracts until the end of the last trading day, they must settle futures transactions by physical delivery or cash settlement.