close position: meaning, definition, pronunciation and examples
B2Formal, Technical (Finance/Business)
Quick answer
What does “close position” mean?
The act or result of ending or terminating a financial transaction, especially by selling an asset or concluding a deal, leaving the party with no further market exposure.
Audio
Pronunciation
Definition
Meaning and Definition
The act or result of ending or terminating a financial transaction, especially by selling an asset or concluding a deal, leaving the party with no further market exposure.
A state or situation of finality, conclusion, or resolution, particularly in business, negotiation, or tactical contexts. It can also refer to a physical or strategic proximity in military or chess contexts, though this is less common.
Dialectal Variation
British vs American Usage
Differences
No significant difference in meaning. Spelling conventions follow national norms (e.g., 'finalise' vs. 'finalize' in surrounding text).
Connotations
Identical in financial contexts. Slightly more likely to be used in everyday British English for concluding non-financial matters (e.g., 'close a position on an issue').
Frequency
Higher frequency in both varieties due to globalized finance. Equal technical usage.
Grammar
How to Use “close position” in a Sentence
[Subject: Trader/Investor/Firm] + close + [Object: position] + (at/for [Price/Result])[Subject: Position] + be + closed + (by [Agent])Vocabulary
Collocations
Examples
Examples of “close position” in a Sentence
verb
British English
- We need to close our position before the market volatility increases.
- The trader closed his position to realise the profits.
American English
- I'm going to close my position on this stock before earnings.
- The algorithm closed the position when criteria were met.
adverb
British English
- Not applicable.
American English
- Not applicable.
adjective
British English
- Not applicable as a standard adjective-noun phrase. 'Close' here is a verb.
American English
- Not applicable as a standard adjective-noun phrase. 'Close' here is a verb.
Usage
Meaning in Context
Business
The fund decided to close its position in the tech giant after the earnings report.
Academic
The study analysed the market impact of large institutions attempting to close positions swiftly.
Everyday
(Rare in pure everyday use) Metaphorically: 'After the argument, I decided to close my position and just agree with her.'
Technical
The stop-loss order automatically triggered to close the position at 1.2350.
Watch out
Common Mistakes When Using “close position”
- Pronouncing 'close' as /kləʊs/ (like the adjective).
- Using it for opening a job vacancy (e.g., 'We closed the manager position').
- Confusing with 'closing position' in a debate (final argument).
FAQ
Frequently Asked Questions
Mostly, but not exclusively. Closing a long position involves selling. Closing a short position involves buying back the borrowed asset (covering). Both actions terminate the market exposure.
It is highly specialized to finance and business. In everyday language, you would say 'finish up', 'conclude matters', or 'drop the issue' instead.
They are often synonyms in finance. 'Liquidate' can sound more formal or final, sometimes implying the conversion of all assets into cash, while 'close' is the standard, neutral term.
In standard usage, it almost always includes an article: 'close a position' or 'close the position'. 'Close position' without an article is found in headlines, trading platform menus, or very abbreviated speech.
The act or result of ending or terminating a financial transaction, especially by selling an asset or concluding a deal, leaving the party with no further market exposure.
Close position is usually formal, technical (finance/business) in register.
Close position: in British English it is pronounced /kləʊz pəˈzɪʃ(ə)n/, and in American English it is pronounced /kloʊz pəˈzɪʃ(ə)n/. Tap the audio buttons above to hear it.
Phrases
Idioms & Phrases
- “Close up shop (related conceptually)”
- “Get out while the going's good”
Learning
Memory Aids
Mnemonic
Imagine a chess game. A 'position' is where your pieces stand. To 'CLOSE position' is to END the game, remove your pieces from the board, and have no more pieces at risk.
Conceptual Metaphor
FINANCIAL COMMITMENT IS A PHYSICAL LOCATION/STANCE. Closing a position is LEAVING THAT LOCATION or STANDING DOWN.
Practice
Quiz
In which context is 'close position' MOST likely used?