Closing a position refers to the operation of selling or buying the same number of contracts from a position before the futures contract expires, so as to complete the position change. When closing the position, the trader will gain or reduce the profit or loss of the existing position and will no longer hold the contract. The liquidation operation can be carried out at any time without waiting for the expiration of the contract.

There are many ways to close positions, and the most common one is reverse trading. For example, if a trader buys 100 shares of crude oil futures in the futures market, he will sell 100 shares of crude oil futures when he closes his position. The significance of liquidation operation lies in zeroing the trader's position, which avoids the problems of physical delivery and futures delivery caused by holding futures contracts.

In futures trading, the liquidation operation is very important for the risk management of traders. Some traders control their exposure by closing their positions continuously, and get the opportunity to make quick profits. However, it should be noted that the liquidation operation itself has risks, for example, traders may face excessive transaction costs, market disturbances and huge slippage costs. Therefore, traders must be cautious when choosing to close their positions and learn to manage their own risks.