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.
Copyright © 2012,
Campbell R. Harvey. All Rights Reserved.
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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
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.
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