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:

How to open and close trades, enter a stop loss/take profit and enter/cancel an order in MT4.

Also see:

Looking for a Top Broker? Sign up through Tradimo & get extra benefits!

eToro Plus500 Markets.com FXFlat

See all top brokers

  • is that any cost others than spread if we hold the position for very long time? Thanks.
  • Hi JHTAN,

    there are several costs that you should take into consideration. Except of spread or commissions, there might be some costs if you held your position overnight. I recommend you to read following lesson: The cost of trading forex, where you can find various types of costs of trading forex. smile
  • Trading profit would only say that when I open the settings and close the trade would have to get involved takeprofit stoploss and thus value. Need to see a trend.

Register Now - It's free!

By clicking on the "Get instant access" button, you agree that you have read, understood, and accepted the Terms & Conditions.