Closing one position by opening a new transaction to offset it.
Liquidation
Related Terms
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The Commitment of Traders (COT) report is a weekly publication that shows the aggregate holdings of different participants in the U.S. futures market. Each Friday, the CFTC (US Commodity Futures...
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The forex spot rate (or FX spot rate) is the amount it costs in one currency to buy another currency for immediate delivery. There isn’t a single “spot” rate. When opening a trade, FX traders are...
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Position sizing refers to the process of determining the number of units to trade, based on your risk tolerance and the size of your trading account.
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A stop order is an order placed to either buy above the market or sell below the market at a certain price. It is an instruction to your broker to execute a trade at a particular level that is less favorable than the current market price. In the image above, the blue dot is the current price. Notice how the green line is […]
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In trading and investing, a “closed position” refers to a situation where a trade has been terminated or exited.