Positions, open and closed

Position

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:

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

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