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.
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
Set take-profit and stop-loss orders when you open a trade so positions close automatically at target levels
Partially closing a position lets you lock in some profit while keeping exposure to further moves
Review closed positions regularly to identify patterns in winning and losing trades
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.
matched with AvaTrade
2 minutes ago