Can be understood as; Net liquidity position = liquidity supply-liquidity demand. Liquidity refers to the ability of assets to be realized smoothly at a reasonable price. It is the relationship between the time scale of investment (how long it takes to sell) and the price scale (discount relative to the fair market price). Stocks are more liquid than real estate.

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Position refers to the money owned by banks, money houses, etc. A financial term. Position management is the core part of building a futures trading system, because the size and distribution of positions determine the trading risks faced by accounts. In actual trading, it is impossible for investors to get a trading model with a 100% chance of winning. If there is no reasonable position management method, one or two loss-making transactions may produce fatal losses, while scientific position management can reduce the losses caused by misjudgment and reduce the destruction rate of account transactions. The core part of the trading system is position management, because the number of positions directly affects the size of profit and loss and the speed of account destruction. Scientific position management can help investors gain the ability to survive in the futures market for a long time.

The current ratio is used to measure the ability of an enterprise to convert its current assets into cash to repay its liabilities before the short-term debt expires. Although the higher the current ratio, the greater the liquidity of enterprise assets, but the excessive ratio shows that the current assets occupy more, which will affect the turnover efficiency and profitability of working capital. Generally speaking, the reasonable minimum flow ratio is 2. Another related concept is quick ratio. Quick assets refer to those assets in current assets that can be realized immediately, such as cash, marketable securities and accounts receivable. Both current ratio and quick ratio are used to express the liquidity of funds, that is, the short-term solvency of enterprises. The benchmark value of the former is 2, and the latter is 1. However, it should be noted that enterprises with high current ratio may not have strong ability to repay short-term debts, because although cash, marketable securities and accounts receivable have strong liquidity in current assets, it takes a long time to realize items such as inventory and deferred expenses, which are also current assets, especially inventory is likely to be overstocked, unsalable, defective and cold-backed, and its liquidity is poor. Quick ratio can avoid this situation, because quick assets refer to those assets that are easy to realize in current assets.