What does it mean to close a position on the platform?

Closing a position means ending an open trade, which finalises the result based on the current market price at the moment of closure. Once a position is closed, the difference between the opening and closing prices determines the financial outcome, resulting in either a profit or a loss that is applied immediately to the trader's account balance. The margin that was allocated to support the position is released and becomes available as free equity once again.

There are several ways to close a position on the platform. The most common method is manual closure, where the trader actively decides to end the trade by selecting the open position and confirming the close action. Positions can also be closed automatically through preset mechanisms. A stop-loss order will close the position if the market reaches a specified unfavourable level, while a take-profit order will close it when a target profit level is achieved. In certain circumstances, the platform's risk management system may also close positions automatically if the account's margin level falls below the required maintenance threshold, a process known as a stop-out or margin close-out.

Understanding when and how to close a position is just as important as knowing when to open one. The timing of closure directly determines the final result of the trade, and waiting too long to close a winning position can turn a profit into a loss if the market reverses, while closing too early may mean missing additional favourable movement. This is why many experienced traders define their exit strategy before entering a trade, setting clear stop-loss and take-profit levels that reflect their risk tolerance and profit expectations. Once a position is closed, all details, including entry and exit prices, duration, costs incurred, and final result, are permanently recorded in the account's transaction history for future reference and analysis.