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  2. Share Prices
  3. Finance Glossary
  4. Terms Beginning With C
  5. Closing Trade

Closing Trade

Definition of 'Closing Trade'

A trade to reduce an investor’s position. A closing buy reduces a short position and a closing sale reduces a long position.

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Related Terms

Closing the BooksEuropean Free Trade AssociationTrade DebtorsClosingClosing DateClosing PriceDaily CloseDay TradingMark to MarketSettlement PriceAllocationCapital MarketsCBOTCounter-TradeEFTAGlobalisationTrade ConfirmationActual Settlement Date Accounting (ASDA)Agency BargainAgent/Agent Bargain

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