Close A Position

Close a position

In the context of general equities, eliminate an investment from one's portfolio, by either selling a long position or covering a short position.

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close a position

To eliminate an investment position. The most common way to close a position is to sell a security that is owned. An investor might also close a position by purchasing stock to replace shares borrowed for a short sale.

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Close A Position

To end an investment; to change from a long position to a short position or vice versa. A long position is ownership of a security or option, while a short position is debt. Thus, to close a long position is to sell a security or option and to close a short position is to buy out the debt.