Closing a position is a general term for selling futures bought by long positions or buying back futures sold by short positions in trading. The purpose of selling futures by bulls and buying futures by bears is to earn the difference income. It is very important to realize the difference income or avoid losses when the market reverses.

Forced liquidation is also called forced liquidation, and it is also called being cut/cut/exploded. According to the different subjects of compulsory liquidation, compulsory liquidation can be divided into exchange compulsory liquidation and brokerage compulsory liquidation. Commonly used in spot gold and futures trading. Forced liquidation due to failure to fulfill the obligation of additional margin.

According to the rules of the exchange, the futures trading is subject to the margin system, and each transaction requires a certain percentage of margin. When the market changes unfavorably, that is, when the market changes reversely, and the delivery month enters, members or customers should also add margin according to the trading rules and the contract.

If the member or customer fails to fulfill the obligation of additional margin within the specified time, the trading ownership will forcibly close the position held by the member or brokerage company.