The whole process of closing futures trading can be summarized as opening positions, holding positions, closing positions or physical delivery. Opening a position, also known as opening a position, refers to the new purchase or sale of a certain number of futures contracts by traders. When a trader holds a futures contract until the end of the last trading day, he must settle the futures transaction through physical delivery or cash settlement. However, only a few people make physical delivery, and most speculators and hedgers usually choose to sell their futures contracts or buy back their futures contracts before the end of the last trading day. This behavior of buying back a sold contract or selling a bought contract is called liquidation.