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SEO Glossary of Terms
A Glossary of Terms relating to search engine optimisation (seo)
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Closed loop

A closed loop is a structure of links that only link to each other within their group. This means that a visitor will never leave a set of websites if they only click on links within them. This can be recognised by search engines and they will do all they can not to index sites that have closed loops links in them. However general consensus still does not state if a closed loop is a site that only contains links to others within the closed loop or if a site has a few closed loops links would still be penalised. In short it is better to have links to other sites outside of a loop in order to be highly ranked.