Futures liquidation refers to that in the process of futures trading, in order to end the contract, the seller or the buyer either buys the futures contract or sells the futures contract within the specified time, so as to gain profits or reduce losses. Futures liquidation is generally divided into the following three types:

1. Closing position: When both parties holding futures contracts fail to make delivery according to the contract within the agreed time limit, the futures company will close the position according to the spot market price, the deposit paid and other factors. In this case, the holder will close the position.

2. Unilateral liquidation: When the holder thinks that the market trend is not conducive to holding the futures contract, he can unilaterally liquidate the position. In this case, he also needs to pay the corresponding handling fee, generally selling or buying futures contracts reasonably according to the market trend, in order to increase income or reduce losses.

3. Closing the position by delivery: On the last trading day before the expiration of the futures contract, the contract holder must fulfill the contract delivery responsibility or close the position.

It should be noted that futures trading is risky, and the timing of liquidation should be determined according to your own investment strategy and risk tolerance. It is necessary to formulate a reasonable liquidation plan according to market transactions.