For example, suppose a trader buys a futures contract at a price of 5000 yuan and establishes multiple single positions. When the price rose to 5500 yuan, the trader decided to close the position. In order to do this, they need to sell a futures contract to close their previous multiple positions. This process is empty leveling.
The main purpose of leveling is to exit the futures market by locking in profits or reducing losses. When traders are uncertain about the future market trend, they can also use the empty level to reduce the risk. In addition, equilibrium can also be used to adjust the investment portfolio to meet specific investment objectives or limit risk exposure.