Liquidation is an operation mode, which refers to the trading behavior of one party in futures trading in order to cancel the futures contract bought or sold before. Exploding positions and flat positions refer to a phenomenon. Exploding positions means that all positions in the account are forced to close positions, and wearing positions means that there is no money in the account and there is still debt after closing positions.

2. The remaining amount is different.

Short position means that there is no remaining amount in the account after liquidation, and after the phenomenon of wearing positions, there is not only no money in the account, but also some money is owed.

3. The situation is different.

Generally speaking, when the net value of your account can't reach the maintenance margin, you will be asked to add margin, and when you can't add funds on time, you will be forced to close your position. Some futures companies use "risk degree" to measure, which is basically the same thing. However, it usually happens in discontinuous transactions when there is a gap in the market. Because of the gap, you will not only lose money, but even post it backwards.

Extended data

1, liquidation can be divided into hedging liquidation and forced liquidation.

Hedging liquidation refers to the liquidation of futures contracts previously sold or bought by futures investment enterprises by buying futures contracts on the same futures exchange and selling futures contracts in the same delivery month. The so-called forced liquidation refers to the forced liquidation of the position of the holder by a third party other than the holder (futures exchange or futures brokerage company, such as the trading platform of Fuhui Global Gold Exchange), also known as liquidation or liquidation.

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, it refers to the behavior that a futures company forcibly closes some or all of its customers' positions in order to avoid losses. When the trading margin required by the customer's position contract is insufficient, the futures company fails to add the corresponding margin in time according to the futures company's notice or actively reduce the position, and the market situation is still developing in an unfavorable direction, the obtained funds are used to fill the margin gap.

2. The difference between hedging liquidation and forced liquidation.

In the course of trading, the futures exchange takes compulsory liquidation measures in accordance with the regulations, and the losses arising from liquidation are borne by members or customers. Realized liquidation profit.

If a futures exchange is forced to close its positions due to violations by its members or customers, it will be included in the non-operating income of the futures exchange and will not be distributed to the members or customers who violate the rules; If it is forced to close its position due to changes in national policies, continuous price fluctuations and other reasons, it will be distributed to members or customers.

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