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.

Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.

Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved

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.

Wall Street Words: An A to Z Guide to Investment Terms for Today's Investor by David L. Scott. Copyright © 2003 by Houghton Mifflin Company. Published by Houghton Mifflin Company. All rights reserved. All rights reserved.