In the commodity market, square-off is the process of closing an open position by taking an equal and opposite position in the same contract. This is done to either realize profits or minimize losses on a trade. For example, if an investor buys a futures contract and the price of the underlying commodity increases, they can choose to sell the contract at a higher price and realize a profit. Alternatively, if the price of the commodity decreases, the investor can choose to sell the contract at a lower price in order to minimize their losses. The square-off process can be initiated manually by the investor or automatically by the trading platform or brokerage firm. It is an important aspect of risk management in the commodity market, as it allows traders to limit their exposure to the market and manage their portfolios effectively.