How to Close a Position in 2025: Guide for Australian Investors

When it comes to investing, knowing when and how to close a position is just as important as choosing the right asset in the first place. Whether you’re trading shares, ETFs, crypto, or even contracts for difference (CFDs), the decision to close a position can make or break your results. In 2025, with the ASX and global markets facing ongoing volatility, and with updates to tax rules for investors, understanding the process and strategy behind closing a position is essential for all Aussies keen to grow (or protect) their wealth.

What Does It Mean to ‘Close a Position’?

In the world of investing and trading, a ‘position’ refers to your exposure to a particular asset—whether you own (long) or have sold short (short) shares, ETFs, crypto, or other financial products. Closing a position means exiting your exposure: selling assets you own, or buying back assets you’ve shorted. It’s the act that locks in your profit, loss, or capital gain for tax purposes.

• Long position: You sell the asset to close.

• Short position: You buy back the asset to close.

Example: If you bought 200 BHP shares at $45 and sell them at $52, closing your position realises a $1,400 gain (minus brokerage and fees).

2025 Updates: Tax, Regulations, and Market Trends

The way you close a position in 2025 is shaped by evolving market conditions and regulatory changes in Australia:

• Capital Gains Tax (CGT) Updates: The ATO has tightened reporting requirements for share and crypto transactions. Every closed position on shares, ETFs, or crypto is now pre-filled in MyTax via data-sharing with major brokers and exchanges.

• Crypto Rules: From July 2025, the ATO treats most crypto trades (including swaps and DeFi transactions) as CGT events. Closing a crypto position triggers a reportable gain or loss, with new thresholds for small transactions exempt under $500.

• Market Volatility: Ongoing global inflation and interest rate uncertainty have increased price swings. Many investors are closing positions faster to lock in profits or cut losses, rather than holding for the long term.

• Superannuation Funds: SMSFs now face stricter documentation rules when closing positions, especially for non-traditional assets.

These changes mean the act of closing a position is more visible to the ATO and has more immediate tax and compliance consequences.

Strategies for Closing a Position: Locking In Gains, Cutting Losses

Closing a position isn’t just a button click—it’s a strategic decision. Here’s how savvy investors are approaching it in 2025:

• Set Exit Targets: Decide your profit or loss threshold before you enter a trade. Use stop-loss and take-profit orders to automate closure.

• Tax-Aware Timing: Consider the CGT discount for assets held over 12 months. Some investors delay closing a position to qualify for the 50% CGT discount.

• Partial Closures: Sell part of your holding to lock in some profit, while keeping the rest exposed for further upside.

• End of Financial Year (EOFY) Planning: In June, many investors close losing positions to harvest capital losses, offsetting gains elsewhere for tax efficiency.

• Responding to News: Major company updates, RBA rate changes, or geopolitical events can trigger sudden decisions to close positions—either to capture a spike or avoid a downturn.

Example: In May 2025, after the RBA’s surprise rate cut, tech stocks surged. Some investors chose to close positions in Afterpay and WiseTech to lock in double-digit gains before the next earnings season.

Practical Steps: How to Close a Position on Popular Australian Platforms

The mechanics differ slightly across brokers and asset types, but the process is generally straightforward:

• Log in to your trading platform (e.g., CommSec, SelfWealth, Stake, Binance Australia).

• Find your open position in your portfolio or ‘Holdings’ section.

• Select the asset, choose ‘Sell’ (for long) or ‘Buy to cover’ (for short), enter the number of units, and set your price (market or limit order).

• Review the order, check brokerage fees, and confirm.

• Download or save the trade confirmation for tax records.

Tip: For crypto, closing a position may involve swapping coins or converting to AUD. Ensure your platform provides a clear transaction history for ATO compliance.

Conclusion: Make Every Close Count

Whether you’re a seasoned trader or a first-time investor, knowing when and how to close a position is a skill that pays dividends—sometimes literally. With tighter tax rules, real-time reporting, and faster-moving markets in 2025, smart Aussies are planning their exits as carefully as their entries. Review your portfolio, set clear rules, and don’t let emotions dictate your decisions when it’s time to close a position.