Clear A Position

Clear A Position - Clear a position means to pay out, or close out on a short or long position, which in turn eliminates any and all obligations. Generally, if a broker recommends you close your long position on any stock, he or she means ?sell it? immediately as they stock's position, the broker believes, is destine to change. For example: If you have a short position on stock, in order to close the position on that particular stock, you would need to take a long position and buy back the stock. So, clear a position means you need to take the opposite position on the one you currently hold in order to get out of a position on a particular stock or security.