Closing position is a technical term in stock trading, and closing position is equivalent to selling in stock trading. It means that an investor who buys and sells stocks or futures cancels the futures contract he bought and sold before, so he trades. In stock trading, it refers to long selling stocks or short buying stocks, which is a general term for these behaviors.

Closing position refers to the behavior that futures investors buy or sell their own stock index futures contracts, the quantity of which is the same as the delivery month, but the trading direction is opposite, which is used to close the D trading of stock index futures. There is also a saying that liquidation refers to the behavior of investors to close their positions, and the way to close their positions is in the opposite direction of the hedging mechanism. Because futures trading has a two-way trading mechanism, opening positions corresponds to closing positions, and there are two kinds of closing positions: closing positions with selling (corresponding to buying) and flat positions with buying (corresponding to selling).

Liquidation can be divided into compulsory liquidation and hedge liquidation. Forced liquidation, also known as position cutting or position cutting, refers to the forced liquidation of the position of the holder by a third party (futures brokerage company or futures exchange) other than the holder. Hedging liquidation means that futures investment enterprises buy and sell futures contracts in the same delivery month on the same futures exchange, and settle futures contracts sold or bought before.