Liquidate a Position

liquidate a position

To sell all the stock or debt securities of a particular type. For example, a portfolio manager might decide to liquidate a position in a stock by selling all the shares of that stock held in the portfolio. A variety of reasons may induce the investor to do this, but the most common one is simply a belief that the security price will fall.

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Liquidate a Position

To sell an investment; to change from a long position to a short position. A long position is ownership of a security or derivative. Thus, to liquidate a position is to sell a security or derivative and either keep or reinvest the proceeds. The most common reason to liquidate a position is the belief that the price of the security or derivative will soon fall.