How do I close a short position in TWS?

If you are holding a short position, there is no option on the TWS to "cover". Rather, you will simply place a buy order to buy back the number of shares or contracts you are short. For example, if you are short 100 shares, you can close your position by placing a buy order for 100 shares. You can also right click on your position at any time and use the "Close" button at the top of the right click window to initiate a closing order.

Please Note:  As IBKR does not allow clients to simultaneously maintain both a long and short position in a given instrument, any order to sell (buy) will only result in a short (long) position to the extent the order quantity exceeds any existing long (short) position held and which would then be closed by execution of that order. Therefore, it is not possible to specify "Sell to close" or "Sell to open", nor "Buy to open" or "Buy to close" when submitting an order.

Note

  • The Close Button allows you to close any open position, even without trading permissions. This feature ensures you maintain control over existing positions. However, please be aware that account-level restrictions may limit access to this function. 

Additional Information

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