DEFINITION of '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 an investor currently holds open.


For example, you might hear it used in the following contexts:
1. Dealers often take long positions in specific securities to maintain inventories and allow for quick and easy trading.
2. The trader closed his position and locked in a profit of 10%.

  1. Session Price

    The session price is the price of a stock over the trading session. ...
  2. Reverse Calendar Spread

    An options or futures spread established by purchasing a position ...
  3. Broker-Dealer

    A person or firm in the business of buying and selling securities, ...
  4. Short (or Short Position)

    A short position is the sale of a borrowed security, commodity ...
  5. Stock Pick

    A situation in which an analyst or investor uses a systematic ...
  6. Book

    A record of all the positions that a trader is holding. This ...
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