What is the specific situation of forced liquidation of two-way transactions?

1, two-way trading means that in futures trading, traders can buy futures contracts as the beginning of futures trading (called buying positions) or sell futures contracts as the beginning of trading (called selling positions), commonly known as "short selling".

2. Liquidation is a term derived from commodity futures trading, which refers to the trading behavior of one party in futures trading to cancel the futures contract bought or sold before. Closing a position is a general term for selling stocks bought by bulls or buying back stocks sold by bears in stock trading.

Extended data:

Closing method:

1, stop loss liquidation: in the case of a certain profit, increase the cost of stop loss protection, and then increase the stop loss according to the technical chart with the development of the market until the stop loss is eliminated. This method is suitable for unilateral market.

2. Close the position at the second top: Close the position when it is observed that the price cannot reach a new high and there are signs of falling back. This liquidation method is an improved and upgraded version of the stop-loss liquidation method, which can grasp the due profit to the greatest extent.

3. Close the position with resistance: close the position when the price reaches or is about to reach the next resistance level, without waiting for the impact result. This method is suitable for market volatility or fishing callback to grab a rebound. When it comes to unilateralism, most obstacles are ineffective and many profits will be missed.

4. Target liquidation: treat each order as a gamble with high odds, and set stop loss and take profit at the same time. The take profit target is at least three times of the stop loss, and adjust the opening position according to the fixed loss amount. When holding a certain profit, the cost of stop loss protection increases. Assuming that the profit-loss ratio is 3: 1 (this is the minimum value), as long as the success rate of making orders reaches 25%, the breakeven point can be reached.

Assuming the success rate is 7: 3, the overall ratio of the system is (7 * 3): (3 * 1), which is 7: 1. This method is also most suitable for volatile markets.