how to close a trade?

Active trades are referred to as open positions and are subject to fluctuations in the exchange rate. Open positions are closed by entering into a trade that takes the opposite position to the original trade, bringing the total amount for the currency pair derivative back to zero. The Top1 trading platform automates the process of closing a position for you. For example, if you have a short position consisting of 50,000 units of USD/CAD, you only need to click a single button to create and execute a buy order for 50,000 USD/CAD to close your position and realize your return.

Realizing gains/losses

Only when you close a position do you realize the actual gains or losses for the trade, thereby affecting the actual cash balance of your account. It is important to understand that gains or losses for open positions are still unrealized. 

Closing a long position 

To close a long position, you must sell an equal amount of the same currency pair derivative to reduce your long position to zero. If you receive more when you sell than you paid to buy the order, you earn a profit. If you receive less, you realize a loss.

Closing a short position 

A short position is the opposite of a long position. In order to close a short position, you would need to buy enough of the currency pair derivative to bring your position back to zero. If you can buy this back for less than you earned when you sold it originally, the difference is retained as profit.

Partial position close 

It is possible to partially close an open position by only selling or buying enough to partly offset the open position. For example, selling only $75,000 when you have an open position of $100,000 EUR/USD, closes three-quarters of the original position, leaving an open EUR/USD position of $25,000.