close a position

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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.
References in periodicals archive ?
The difference is that the foreign currency option is limited by time, as it does not close the position when the stop-loss price is hit yet still provides financial protection for you.
What can catch traders out is an option's value can drop dramatically in the final days of its life - good for those who have sold an option and are looking to buy one to close the position but bad for those who have bought options.
The new silver-based instrument has all the advantages of silver futures, without the need to close the position at an expiry date.
On the other hand, bonds of Transaero obtain not high liquidity due to weak financial quality of the borrower, so participation in the offer is a good chance to close the position. Note, there are others trading at the market hiving higher liquidity and yield above 12%: loans of Bank Renaissance Capital MBa3 (B2/B/B), TCS Bank MBa2 (B2/a/B) and RUSALa8, which might be not a bad alternative to the bonds of Transaero.
Caisse d'Epargne said the loss was detected during normal controls, and that it had taken immediate action to close the position.
If you have bought a team's seasonal points and they win their first three matches, why automatically close the position?
An auxiliary encoder input can be used to close the position loop or as a command reference.