Closing position refers to the behavior of futures traders to buy or sell precious metal contracts with the same variety, quantity and delivery month, but in the opposite direction, and to close futures trading. Simply put, it means "sell what you bought and buy what you sold (short)."

So, what does liquidation in precious metals mean? The "liquidation" of precious metals refers to the reverse transaction with the positions held. When buying a long position, closing the position means selling and closing the original long position. Selling short positions when opening positions, and closing positions means buying the original short positions.

The liquidation of precious metals can be divided into hedging liquidation and forced liquidation. The following are examples of these two kinds of liquidation:

Now many precious metals can be bought up and down. If they buy up, they will buy first and then open positions. If they want to sell, they will choose to sell and close their positions. This is a process of buying up and making money! Buy and sell, open the position first. The lower the price, the more money you earn. If you want to sell, you must choose to buy and close your position. This is a process of buying and making money! In other words, no matter how the market goes, as long as you buy in the right direction, you will make money, and if you buy in the wrong direction, you will lose money.

When the investor's margin level is lower than a certain standard, in order to prevent the risk from further expanding, the system will implement compulsory liquidation. When the margin ratio of the customer account is 30%, the system will force the liquidation from the transaction with the most losses until the margin ratio returns to above 30%. When the price fluctuates greatly, it is possible to force the liquidation with a margin ratio of less than 30%.