1 short position: short position involves margin trading. When the investor's margin is not enough to offset the losses caused by market fluctuation, the exchange will force investors to close their positions, which is what we often call short position. For example, if an investor's contract for opening a position is worth 1, yuan and the deposit paid for opening a position is 5, yuan, when the contract loss reaches 5, yuan, it will be forced to close the position by the exchange.

2 liquidation: that is, closing a position through a reverse transaction, which can be a stop profit or a stop loss.

in fact, the short position itself is a kind of liquidation, but the short position is enforced by the exchange. In addition, short positions must mean losses, and liquidation can be both profit and loss. When the market is unfavorable, the losses caused by short positions are greater than those caused by investors' independent liquidation.