Hello, liquidation refers to the operation that investors sell stocks to recover funds when the stock price rises to near the investor's purchase price or cost price.

For example, if you buy a stock with 5 yuan and the stock immediately falls to 4.9 yuan, you are trapped. Then you continue to fall to 3 yuan, and you are trapped. Now that the stock has risen above 5 yuan or 5 yuan, you are off the hook.

Classified solutions can be divided into active solutions and passive solutions.

1. Active liquidation: When the stock price falls below the purchase price, investors will liquidate their positions by lightening their positions (stop loss in time), exchanging shares (trading weak for strong), shorting (selling high and buying low) and intraday T+0 (intraday spread).

2. Passive liquidation: Investors wait for liquidation in two ways: diffusion (covering positions to reduce costs) and waiting (locking positions and waiting for stock prices to rise).