Futures investors buy or sell stock index futures contracts with the same variety, quantity and delivery month, but in the opposite direction, so as to settle stock index futures transactions. It can also be understood as: liquidation refers to the trading behavior of traders, and the way of liquidation is to hedge the position direction.
Closing a position is relative to opening a position. Opening a position is to buy a certain number of stocks to enter the market, and closing a position is to sell the same number of stocks and sell the stocks in hand, thus withdrawing from the market.
Extended data:
There are many reasons for compulsory liquidation in futures trading, such as customers' failure to add trading margin in time, violation of trading position restrictions and other irregularities, temporary changes in policies or trading rules, etc. In the standardized futures market, it is most common that customers are forced to close their positions because of insufficient trading margin.
Specifically, when the trading margin required by the customer's position contract is insufficient, and the customer fails to add the corresponding margin in time or take the initiative to reduce the position according to the notice of the futures company, and the market situation is still developing in the direction of unfavorable positions, the futures company forcibly closes part or all of the customer's positions and fills the margin gap with the funds obtained.
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