Answer: You're probably thinking of a "close position" chord. Here's the gist of it:

If a chord is played with all its tones as close together as they can be, then it's in "close position." If the notes are spread out then it's in "open position." An open position chord has some "air" between one or more of its tones. For any particular chord in a particular inversion there is only one close position but there are lots of possible open ones. Chords are most commonly heard voiced in an open position.

(More examples are on page 58 of Exploring Theory with Practica Musica.)

People often mishear this as "closed" position because the meaning seems somehow logical, and you may by now even see it written that way in some sources. Sort of like "web sight," which turns up a lot.