Futures liquidation is any transaction that offsets or closes out a long or short futures position, it can also be known as an offset. Often times, liquidation is the act of selling off your futures position in exchange for cash. Once you have liquidated you positions for a cash exchange, that cash will then go into your account where you may decide to purchase other contracts or withdraw for personal use. Futures liquidation is different than the more commonly known business liquidation, where a company sells off all assets for a variety of reasons in order to become solvent.