Close

In cryptocurrency trading, "close" refers to the action of finalizing or completing a trade position by selling an asset that was previously bought (closing a long position) or buying back an asset that was previously sold (closing a short position).

Example 1: If a trader buys 1 Bitcoin at $50,000 and later sells it at $55,000, they have closed their long position, realizing a profit of $5,000.

Example 2: If a trader sells 1 Bitcoin at $60,000 and later buys it back at $55,000, they have closed their short position, realizing a profit of $5,000.

Closing a position allows traders to lock in profits or minimize losses. It is a fundamental aspect of trading strategies aimed at capitalizing on price movements in the cryptocurrency market.