Close Position

Close Position

The act of taking the opposite position of the current position thereby getting out of a position in a particular stock or security.

Also referred to as "Closing Transaction."

Notes:

If a broker recommends that you close your long position on a stock they mean "sell it immediately." For example if you have a short position in a stock for you to close the position you will need to take a long position, or in other words you have to buy back the stock.

See also: Buy, Long (or Long Position), Sell, Short (or Short Position), Trade