Positions, open and closed


    What is an open or closed position in trading?

    In online trading, a position refers to the state of a trade after a trader has entered the market.

    When a trader enters the market, they are said to “open” a position in the market. When a trader exists the market, they are said to “close” the position.

    An open position means that the trader holds a certain quantity of a given financial instrument.

    In order to close a position, the position must be bought or sold back to the market. So to close a long position, traders would sell the asset back to the market. And to close a short position, the trader would buy the asset.

    Read more on opening a position in MetaTrader 4, the most popular trading software: