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.

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.

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 ?

Disciplined short sellers were heavy buyers of both retail names on Tuesday to close their position, and by default contributed to the rally, the CNBC host said.

Cramer: Short Sellers Played Role In Wednesday's Retail Surge

Anyone wishing to close their position can do so now by selling, as the case may be, at 16.5 with Spreadex or 16 with City or IG.

Football: Spreadwise: Keep faith with Wigan

For investors who are in the market and nervous, but don't want to close their positions, the cost of portfolio protection is relatively low.

Is it time to take out portfolio protection?

"Japan's big event finished yesterday, so the fiscal cliff news became a catalyst for traders to close their positions and sell the dollar before the Christmas holidays," said Yuji Saito, director of foreign exchange at Credit Agricole Corporate & Investment Bank in Tokyo.

Dollar down vs. yen on stalemate over fiscal cliff budget talks

Shortsellers who rushed to close their positions after Porsche's announcement on Sunday were paying virtually any price to get their hands on the few remaining shares, even though Porsche insisted its announcement would allow short sellers to unwind their positions "without haste and without greater risk." There was wide speculation about which investment companies had been caught out by the short squeeze, and many banking shares fell as a result.

VW shares dive as Porsche eases short squeeze

''Investors who had felt safe buying bonds are now selling to close their positions for now,'' said a trader at a foreign brokerage.