Example of an open position
Let’s suppose that you want to go long on shares in company X and decide to place a CFD trade. Once you have decided the parameters of your trade – and done the necessary technical analysis and fundamental analysis – you would enter the market. At this point, your position would be considered ‘open’.
To close an open position, you would usually need to reverse the trade that you placed to open it (selling any assets that have been bought, or vice versa). In some cases, an open position would be closed automatically if it reached its expiry date. This would happen with a futures contract for example.
An open position would also be closed automatically if it had a stop or a limit attached which was subsequently filled.