A “closed position” refers to a transaction that has been fully executed, resulting in the trader’s exposure to the market being eliminated. When a trader buys a currency or any other asset, they will need to sell it at some point to close the position. Similarly, when a trader sells a currency or any other asset, they will need to buy it at some point to close the position. Once the position is closed, the trader’s profit or loss will be realized based on the difference between the opening price and the closing price.