Crystallisation is the term used when a trader or business closes a position and then reopens an identical position immediately.
In doing so, they are able to balance out the net value of their assets by quickly realising a loss or profit, without losing the position that they believe can still bring more profit. Mostly this is done for tax purposes: allowing a trader to realise a capital loss and pay any charges on it immediately.
Most countries have tax regulations in place to prevent the practice of crystallisation.
