Closed Position Definition

Closed Position Definition. A Closed Position in a currency is one where any risk exposure in the foreign currency has been eliminated. The process to close a position is to sell or buy a specific amount of currency to offset an equal amount of currency in the respective open position. This action will "square", "offset" or "even up" the position. Closing a long position in a currency requires selling, and closing a short position in a currency requires buying.