The execution of the two legs of a position, completing a trade on both buy and sell sides. In other words, it involves a trade for which both a buy and sell order has been executed, ending up either in profit, loss, or in a breakeven. Closing a position may also involve canceling out an existing position in a security/ investment by taking the opposite position. Closing a position may be carried out by means of a short sale, that is, buying back the underlying. For a long position, closing entails selling the investment.

Closing a position implies terminating an exposure to a specific market or security.