DEFINITION of 'Closing'

The end of a trading session. The closing of a trading day halts trading on exchanges. After-hours trading still occurs until 8 pm.

An action which will eliminate your position in a security. Closing a position is done by taking an action which will take away your exposure to risk.

The final procedure in a sale in which documents are signed and recorded. This is the time when the ownership of the property is transferred.


The close of the New York Stock Exchange is marked by ringing a bell at 4 pm EST. The closing price is often quoted and used when looking at historical prices. For example if you own a stock, then you can close your position by selling it.

Closing is often referred to in sales as the act of convincing the purchaser to actually purchase, often seen as the toughest part.

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  1. In the forex market, how is the closing price of a currency pair determined?

    The foreign exchange market, or forex, is the market in which the currencies of the world are traded by governments, banks, ... Read Full Answer >>
  2. Why don't stocks begin trading at the previous day's closing price?

    Most stock exchanges work according to the forces of supply and demand, which determine the prices at which stocks are bought ... Read Full Answer >>
  3. What is the history behind the opening and closing bells on the NYSE?

    Similar to the school bells that most of us heard during our school days, the New York Stock Exchange's (NYSE) opening and ... Read Full Answer >>
  4. Do beneficiaries pay taxes on life insurance?

    Generally speaking, when the beneficiary of a life insurance policy receives the death benefit, this money is not counted ... Read Full Answer >>
  5. Can I borrow from my annuity to put a down payment on a house?

    You can borrow from your annuity to put a down payment on a house, but be prepared to pay an assortment of fees and penalties. ... Read Full Answer >>
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