The main difference between liquidation and clearance lies in the different operations: liquidation is to force the sale of shares in the account; Clearance is the operation that investors take the initiative to sell all stocks at one time, and there is no other difference. Closing and clearing positions refer to individuals or institutions selling tradable varieties such as stocks, bonds and futures in their accounts. Closing a position is a general term for selling stocks bought by bulls or buying back stocks sold by bears in stock trading.

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. However, only a few people make physical delivery, and most speculators and hedgers generally choose to sell their futures contracts or buy back their futures contracts before the end of the last trading day.

That is to say, the original futures contract is written off by a futures transaction with the same amount and opposite direction, thus ending the futures transaction and relieving the obligation of physical delivery at maturity. This behavior of buying back a sold contract or selling a bought contract is called liquidation.