Close (Trading)

In trading, "close" has two related meanings. The close, or closing price, is the last price at which an asset trades in a session or chart period; it is the figure most often quoted for daily performance and is one of the four prices shown on each candlestick chart bar. Stock exchanges set it through a closing auction, while crypto markets, which trade around the clock, usually use a fixed cut-off such as midnight UTC. To close a position means to exit it by making the opposite trade: selling an asset bought earlier, or buying back an asset sold short, as described under long and short positions. Closing turns an open, unrealised gain or loss into a realised profit or loss. A position closed by an exchange because margin ran out is a liquidation. Also see Market Order.