Closing a Trade in Crypto Markets
Close is the closing price – one of the main data points used to track the performance of an asset.
What is close?
Before the advent of electronic communication networks in 1969, stock trading was conducted exclusively during regular market hours, such as 9:30 a.m. to 4 p.m. for the New York Stock Exchange. As a result, it was possible to clearly delineate asset performance by day: trading opened and closed at certain price points, and during each day there were easily identifiable highest and lowest prices.
Cryptocurrency exchanges, which emerged in the early 2010s shortly after the invention of cryptocurrencies themselves, have maintained 24-hour trading from the beginning, thanks to two facts: these platforms are exclusively online, and the assets listed on them run 100% of the time. Despite this, they still provide their users with OHLC data, most often in the form of candlestick charts.
Specifically, the closing price is often considered by traders to be the most important of the four metrics, as it is used as a standard benchmark for evaluating an asset’s performance over various time periods.