DEFINITION of 'Closing Range'

The band of prices that a security trades at in a specified period, shortly before market close. In the futures market, it refers to the trading range or the minimum and maximum prices that a contract traded at, during the official closing period specified by the exchange.

BREAKING DOWN 'Closing Range'

The closing range for a specific security will generally not be very wide, in the case of an orderly market, but may be quite significant during periods of volatility and turmoil. A pattern of consistently higher closing ranges for a stock, in comparison to its prices over the rest of the day, may indicate that it is being subjected to a form of market manipulation known as "high close."

RELATED TERMS
  1. Close

    The end of a trading session in financial markets. "Close" refers ...
  2. Range

    A stock's low and high prices for a particular trading period, ...
  3. Trading Range

    The spread between the high and low prices traded during a period ...
  4. Minimum Price Contract

    A forward contract with a provision that guarantees a minimum ...
  5. Limit Down

    The maximum amount by which the price of a commodity futures ...
  6. Previous Close

    A security's closing price on the preceding day of trading. Previous ...
Related Articles
  1. Investing

    Business Cycle

    The business cycle refers to the fluctuations in economic activity that an economy experiences over a period of time. It consists of expansions, or periods of economic growth, and contractions, ...
  2. Trading

    The Difference Between Forwards and Futures

    Both forward and futures contracts allow investors to buy or sell an asset at a specific time and price.
  3. Trading

    Trade This High Probability Bollinger Band Pattern (INTC, YHOO)

    Bollinger Band box patterns set up profitable opportunities when trends give way to well organized trading ranges.
  4. Trading

    Measure Volatility With Average True Range

    Find more profitable entry and exit locations with this standard indicator.
  5. Investing

    Introduction To Currency Futures

    The forex market is not the only way for investors and traders to participate in foreign exchange.
  6. Investing

    The Auction Method: How NYSE Stock Prices are Set

    The New York Stock Exchange (NYSE), sometimes referred to as “the big board,” is the oldest and largest stock exchange in the United States. NYSE is the place investors think of when ...
  7. Investing

    3 Reasons to Use ETF Options Over Futures (SPY, QQQ)

    Learn about exchange-traded fund (ETF) options and index futures, and why it might be a better decision to use ETF options instead of futures.
  8. Trading

    How to Trade Dow Jones Future Contracts

    Learn about the Dow Jones Index futures contracts available and obtain step-by-step instruction on how to trade the stock index futures.
  9. Trading

    An Introduction To Trading Forex Futures

    We explain what forex futures are, where they are traded, and the tools you need to successfully trade these derivatives.
RELATED FAQS
  1. What is the difference between an options contract and a futures contract?

    Both futures and options trading are considered advanced forms of market trading, and require additional training or the ... Read Answer >>
  2. What is the logic behind using Bollinger Bands® as an indicator of volatility?

    Discover the logic behind using Bollinger Bands as a measure of price volatility for a security, and how the bands adapt ... Read Answer >>
  3. What is the Volatility Ratio formula and how is it calculated?

    Understand what the volatility ratio indicator is, how it is calculated and the way this technical indicator is used by traders ... Read Answer >>
  4. What are the top technical indicators used for Range-Bound Trading strategies?

    Learn how to identify when a market is range bound and what some of the technical indicators are that work best for trading ... Read Answer >>
  5. What does the underlying of a derivative refer to?

    Find out more about derivative securities, what an underlying asset is and what the underlying assets refer to in stock options ... Read Answer >>
  6. What are the advantages of a limit order over a market order?

    Understand the functional differences between a limit order and a market order and the respective advantages and disadvantages ... Read Answer >>
Hot Definitions
  1. 403(b) Plan

    A retirement plan for certain employees of public schools, tax-exempt organizations and certain ministers. Generally, retirement ...
  2. Master Of Business Administration - MBA

    A graduate degree achieved at a university or college that provides theoretical and practical training to help graduates ...
  3. Liquidity Event

    An event that allows initial investors in a company to cash out some or all of their ownership shares and is considered an ...
  4. Job Market

    A market in which employers search for employees and employees search for jobs. The job market is not a physical place as ...
  5. Yuppie

    Yuppie is a slang term denoting the market segment of young urban professionals. A yuppie is often characterized by youth, ...
  6. SEC Form 13F

    A filing with the Securities and Exchange Commission (SEC), also known as the Information Required of Institutional Investment ...
Trading Center