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What does liquidation mean, compulsory liquidation, futures liquidation, liquidation price.
Closing position: a term derived from commodity futures trading, which refers to the closing position of a party in futures trading in order to cancel the futures contract previously bought or sold. Closing a position is a general term for selling stocks bought by bulls or buying back stocks sold by bears in stock trading.

Forced liquidation: refers to the forced liquidation of the position of the holder by a third party other than the holder (futures exchange or futures brokerage company), also known as liquidation or liquidation.

Futures liquidation: refers to the behavior of futures traders to close their positions by buying or selling futures contracts with the same variety code, quantity and delivery month but opposite trading direction.

Closing price: refers to selling the originally bought contract or buying the originally sold contract. After closing the position, lighten the position, closing the short position is equivalent to buying, and closing the long position is equivalent to selling.

Extended data:

Closing method:

1, stop loss liquidation: in the case of a certain profit, increase the cost of stop loss protection, and then increase the stop loss according to the technical chart with the development of the market until the stop loss is eliminated. This method is suitable for unilateral market.

2. Close the position at the second top: Close the position when it is observed that the price cannot reach a new high and there are signs of falling back. This liquidation method is an improved and upgraded version of the stop-loss liquidation method, which can grasp the due profit to the greatest extent.

3. Close the position with resistance: close the position when the price reaches or is about to reach the next resistance level, without waiting for the impact result. This method is suitable for market volatility or fishing callback to grab a rebound. When it comes to unilateralism, most obstacles are ineffective and many profits will be missed.

4. Target liquidation: treat each order as a gamble with high odds, and set stop loss and take profit at the same time. The take profit target is at least three times of the stop loss, and adjust the opening position according to the fixed loss amount. When holding a certain profit, the cost of stop loss protection increases.

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