There are generally two ways to close positions in commodity futures trading (namely, closing positions). One is hedging liquidation; The second is physical delivery. Physical delivery is to fulfill the responsibility of futures trading through physical delivery. Therefore, futures delivery refers to the shares held by the buyers and sellers of futures trading when the contract expires.

Physical delivery and liquidation of futures trading in accordance with the provisions of the exchange.

Hedging refers to the futures trading behavior aimed at avoiding the risk of spot price fluctuation. One of the basic economic functions of the futures market is its price risk avoidance mechanism, and the means to achieve this goal is hedging trading. Traditional hedging means that producers and operators buy or sell a certain number of spot commodities in the spot market, and at the same time sell or buy futures commodity contracts of the same variety and quantity in the futures market with opposite trading directions, so as to make up for the losses in another market with the profits of one market and avoid the risk of price fluctuation.