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General TradingC

Closed Position

A closed position refers to a trade that has been terminated by executing an opposite transaction, realizing any profit or loss. For example, a long position is closed by selling the same amount of the asset, while a short position is closed by buying it back. Once a position is closed, the realized profit or loss is reflected in the account balance, and the trader no longer has market exposure on that instrument.

Example

She closed her long position in Tesla at $250 for a $30 per share profit after the stock hit her predetermined target.