Closed Position in Forex

A closed position is a trade that is no longer active because the exposure has been fully exited or offset. Once a position is closed, later price changes no longer change the result of that specific position.

From Open to Closed

A position begins as open exposure to market movement. It becomes closed when the trader or system completes the transaction needed to remove that exposure. The platform then records the final result according to its pricing, costs, and account rules.

Closed Position vs. Open Order

A closed position is different from an open order. A position means market exposure already exists; an order is an instruction that may still be waiting to execute. Closing a position ends the exposure, while cancelling an unfilled order prevents that instruction from creating exposure.

Why the Distinction Matters

When reviewing a chart or trade history, it is important to know whether a displayed marker represents an active position, a completed position, or merely an order instruction. These states describe different things.

Key Takeaway

A closed position is market exposure that has been fully exited. It is no longer affected by subsequent price movement.