Liquidation refers to the behavior of futures investors to buy or sell stock index futures contracts with the same variety, quantity and delivery month, but in the opposite direction, in order to settle stock index futures transactions. It can also be understood as: closing positions refers to the trading behavior of traders closing positions, and the way to close positions is to hedge positions in the opposite direction.

Closing futures trading is equivalent to selling stocks. Because futures trading has a two-way trading mechanism, corresponding to opening positions, closing positions can be divided into buying positions (corresponding to selling positions) and selling positions (corresponding to buying positions).

What does it mean to close the spot market?

There are three kinds of liquidation: the first is called market liquidation, the second is called take profit liquidation, and the third is called stop loss liquidation. Closing a position refers to the price at which an investor's existing position is closed at the current market price, or when it exceeds this price, the system will default to the price at which the investor has previously set a stop loss. The second kind of take profit closing means that when the market price reaches or exceeds the take profit price set by investors, the system will automatically close the position. The third kind of stop-loss liquidation refers to the reverse opening of warehouse receipts according to the stop-loss price set by investors, and the transaction quantity can be all or part; Reduce transaction risk.

How to settle future positions?

If it is stock index futures, there will be a handling fee for closing positions in the day.

If it is commodity futures, some varieties are free.

The total turnover * commission rate is the handling fee.

Related Q&A: What does automatic liquidation mean? When investors make products such as gold or crude oil, they often encounter a situation, that is, automatic liquidation. What does gold do? What does automatic liquidation mean? What does automatic liquidation mean? Automatic liquidation means that investors lose their positions in the investment process, and for some reason, their positions are closed by the trading platform without liquidation. Because many times, automatic liquidation is not like the wishes of investors, and losses often occur.