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Book

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Definition of 'Book'

A record of all the positions that a trader is holding. This record shows the total amount of long and short position that the trader has undertaken.
Investopedia Says

Investopedia explains 'Book'

For example, a trader with a very simple "book" may hold two positions: one long position of XYZ stock worth $1,500 and a short position worth $2,500. Keeping an up-to-date book allows a trader to be aware of his or her positions, and would be a good step in preventing a trader from being exposed to any one position for a long period of time.

Related Definitions

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    Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.2. In the context of options, the buying of an options ...
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  • Short (or Short Position)

    1. The sale of a borrowed security, commodity or currency with the expectation that the asset will fall in value.2. In the context of options, it is the sale (also known as "writing") of ...
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  • Position

    The amount of a security either owned (which constitutes a long position) or borrowed (which constitutes a short position) by an individual or by a dealer. In other words, it's a trade ...
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    • Desk Trader

      A trader who is restricted to instituting trades for a firm's clients and who is unable to trade with his/her firm's own accounts.
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    • Book Value

      1. The value at which an asset is carried on a balance sheet. To calculate, take the cost of an asset minus the accumulated depreciation.2. The net asset value of a company, calculated ...
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    • Public Book (Of Orders)

      A book containing all of the buy and sell orders for a specific security that are placed by the public. The public book is kept by an order book official or other market specialists.
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    • Cash Book

      A financial journal that contains all cash receipts and payments, including bank deposits and withdrawals. Entries in the cash book are then posted into the general ledger. The cash book ...
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