Position

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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.

BREAKING DOWN '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%.

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