Below is a glossary of terms that are used in the online trading industry. Select the first letter of the word you are seeking from the list above to jump to the appropriate section of the glossary.
What is the Closing Price?
The Closing price, also known as the closing quote, is the price of an asset in the trading market at the end of the trading day. It is important to note that the closing price of one day is not necessarily the same as the opening price of the same asset on the following day. Fluctuations in the asset value can, and often do, continue even when the markets are closed while the asset is not being traded.
How does one use the Closing Price?
The Closing Price is the primary indicator for a trader on what the currency pair has done on the day that you are weighing a long or a short position. By examining the closing price, along with the day high and the day low, traders can gauge the volatility of the currency and develop a strategy to either buy, sell, or avoid the currency altogether.