Essential

Closed Position

A trade that has been exited by executing an equal and opposite transaction. Profit or loss is realised when a position is closed.

Definition

A closed position is a trade that has been fully exited, meaning the trader no longer has any exposure to that asset. To close a long position, you sell the same amount; to close a short position, you buy it back. Once closed, the profit or loss is locked in and reflected in the account balance.

How It Works

  • Long position closed by selling the same instrument and size
  • Short position closed by buying back the same instrument and size
  • Stop-loss and take-profit orders close positions automatically when triggered
  • Margin held for the position is released back to available balance once closed

Trading Tips

1

Set take-profit and stop-loss orders when you open a trade so positions close automatically at target levels

2

Partially closing a position lets you lock in some profit while keeping exposure to further moves

3

Review closed positions regularly to identify patterns in winning and losing trades

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JD

James D. from London

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2 minutes ago