Closedout

Closedout is a term used across several industries to describe the act of ending, settling, or liquidating exposure, inventory, or a position. It is used as a verb and as a noun or adjective in different contexts, and spelling variants include closeout, close-out, closed-out, and occasionally closedout.

In finance and trading, to close out a position means to offset an existing long or short by a new trade, thereby terminating the exposure and realizing a profit or loss. Close-out can also refer to the process of settling a contract before expiration, such as closing out futures, options, or currency positions.

In accounting and corporate finance, closing out more generally refers to ending accounts or project phases at period end, including closing entries that transfer balances to permanent accounts and preparing financial statements.

In retail and inventory management, closed-out or closeout refers to inventory being liquidated because it is discontinued or out of season; closeout sales offer substantial discounts to clear stock.

In sports and competitions, to close out a series or match means to win the decisive games that end the contest.

Usage and spelling vary by region and industry; although closedout appears in some contexts, more common forms are closeout or close-out. The term is often understood across finance, accounting, retail, and competitive contexts to denote endings, settlements, or final eliminations.