liquidation refers to the behavior of futures investors in order to close a futures contract transaction before physical delivery (that is, before the termination of the futures contract period), so as to close the position or sell it in the opposite direction (opening the position is buying; Opening is selling, then closing is buying. ) to trade the futures contracts with the same variety, quantity and delivery month that the original position has bought or sold. Because futures trading has a two-way trading mechanism, there are two types of closing positions corresponding to opening positions: buying closing positions (corresponding to selling opening positions) and selling closing positions (corresponding to buying opening positions). Investors can choose to close their positions in advance before the contract expires; If you hold the contract until the last trading day, you must settle the futures transaction through cash delivery. Closing a position in futures trading is equivalent to selling in stock trading. In the transaction, the position held is opposite to the price trend, and the liquidation measures taken to prevent excessive losses are also called "cutting positions".
The essence of warehouse locking is to close the position, but its function is mainly a means taken under special circumstances, such as a special means taken when it is too late to close the position when it is rising or falling rapidly, but it will cost more transaction fees than closing the position. For example, when the main force enters a certain variety in the early stage, warehouse receipts need to be established on both sides, and most of them need to be locked. Locking warehouses can sometimes effectively achieve the main purpose.