- Position (finance)
In financial trading, a position is a binding commitment to buy or sell a given amount of financial instruments, such as securities, currencies or commodities, for a given price.
The term "position" is also used in the context of finance for the amount of securities or commodities held by a person, firm, or institution, and for the ownership status of a person's or institution's investments.
Trading and financial assets
- When a trader buys an option contract that he has not already written (i.e. sold), he is said to be opening a long position.
- When a trader sells an option contract that he already owns, he is said to be closing a long position.
- When a trader is 'long', he/she wins when the price increases, and loses when the price decreases.
- When a trader writes (i.e. sells) an option contract that he does not already own, he is said to be opening a short position.
- When a trader buys an option contract that he has written (i.e. sold), he is said to be closing a short position.
- When a trader is 'short', he/she wins when the price decreases, and loses when the price increases.
The long and the short of it is that: buyers are referred to as the long; and sellers are referred to as the short.
Net position is the difference between total open long (receivable) and open short (payable) positions in a given assets (security, foreign exchange currency, commodity, etc...) held by an individual. This also refers the amount of assets held by a person, firm, or financial institution as well as the ownership status of a person's or institution's investments.
Stock market Types of stocks Participants Exchanges Stock valuation Financial ratios Trading theories
and strategiesAlgorithmic trading · Buy and hold · Contrarian investing · Day trading · Efficient-market hypothesis · Fundamental analysis · Market timing · Modern portfolio theory · Momentum investing · Mosaic theory · Pairs trade · Post-modern portfolio theory · Random walk hypothesis · Style investing · Swing trading · Technical analysis · Trend following
Related termsBlock trade · Cross listing · Dark liquidity · Dividend · Dual-listed company · DuPont Model · Flight-to-quality · Haircut · IPO · Margin · Market anomaly · Market capitalization · Market depth · Market manipulation · Market trend · Mean reversion · Momentum · Open outcry · Public float · Rally · Reverse stock split · Share capital · Short selling · Slippage · Speculation · Stock dilution · Stock split · Trade · Uptick rule · Volatility · Voting interest · Stock market index
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Position (finance) — En finance, la position est la quantité d un titre financier qui est soit détenue (ce qui constitue une position longue), soit empruntée (ce qui constitue une position courte) par une personne ou un trader. Une position est donc ouverte ou en… … Wikipédia en Français
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