To close out an existing position with an offsetting transaction. For example, a Forex Trader who currently has a long position of $ 1,000,000 in USD/JPY would need to sell the identical amount or 1 million units of the U.S. dollar Base Currency in order to square their position. The remaining Yen amount would be their net profit or loss after having squared their positions.
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Organization of Petroleum Exporting Countries
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