I want to understand the distinction between open trading and close trading. What are the key differences between these two types of trading in terms of their operations, accessibility, and possibly their impact on the market?
7 answers
EnchantedSoul
Thu Nov 21 2024
Closing a position is a crucial aspect of securities trading.
Martina
Thu Nov 21 2024
It involves executing a transaction that reverses an existing open position.
Alessandra
Thu Nov 21 2024
This action essentially cancels out the initial exposure and eliminates any risk associated with the position.
Raffaele
Wed Nov 20 2024
For instance, if an investor has a long position in a security, closing it would require selling the security.
Giuseppe
Wed Nov 20 2024
Conversely, if an investor has a short position, closing it would involve buying the security back.