Position

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Dictionary Says

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.
Investopedia Says

Investopedia explains 'Position'

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%.

Related Definitions

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    Broker-Dealer

    A person or firm in the business of buying and selling securities operating as both a broker and a dealer depending on the transaction.
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    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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    • Stock Pick

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    • 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.
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    • Evening Up

      A slang phrase used to describe an investor who closes a position by making an offsetting transaction. An investor will eliminate his or her exposure to a security's risk by evening ...
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    • Session Price

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