A party to a futures contract cannot liquidate a position prior to the settlement date by taking an offsetting position in the same contract.

Name: A party to a futures contract cannot liquidate a position prior to the settlement date by taking an offsetting position in the same contract.
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A party to a futures contract can liquidate a position prior to the settlement date by taking an offsetting position in the same contract. This is known as closing out the position.

A Party to a Futures Contract Cannot Liquidate a Position