When you buy the stock, you are said to have created a long position in the
stock. Some traders are actively involved in taking positions throughout the day.
When you sell the stocks, you are said to have squared off your position.
Reverse is also true. If you short sell some stocks in the beginning of the day
then you need to square off the position on the same day other wise brokerage house
will automatically square off your position.
In summary, Squaring off the position means closing the position that you have opened earlier.
What do you think on this topic? Please express your opinion or ask any question through comment below. You can write to me at reply2sagar@gmail.com
stock. Some traders are actively involved in taking positions throughout the day.
When you sell the stocks, you are said to have squared off your position.
Reverse is also true. If you short sell some stocks in the beginning of the day
then you need to square off the position on the same day other wise brokerage house
will automatically square off your position.
In summary, Squaring off the position means closing the position that you have opened earlier.
What do you think on this topic? Please express your opinion or ask any question through comment below. You can write to me at reply2sagar@gmail.com
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