Square Position

AAA

DEFINITION of 'Square Position'

A term used in foreign-exchange trading. The term "square position" denotes that the positions of the currency dealer are offsetting – the buy positions of the dealer are equal to the sell positions.

INVESTOPEDIA EXPLAINS 'Square Position'

When a dealer is in a square position, the positions are perfectly hedged. If the dealer is not in a square position, then he or she is taking either a long or a short position. A square position is in the middle, neither net long nor net short.

RELATED TERMS
  1. Currency History

    The historical values of a base currency in relation to the values ...
  2. Net Short

    A condition in which an investor has more short positions than ...
  3. Net Long

    A condition in which an investor has more long positions than ...
  4. Spot Exchange Rate

    The rate of a foreign-exchange contract for immediate delivery. ...
  5. Forex - FX

    The market in which currencies are traded. The forex market is ...
  6. Steve Cohen

    A trading magnate also referred to as the Hedge Fund King and ...
RELATED FAQS
  1. No results found.
Related Articles
  1. Forex Education

    Forex: Wading Into The Currency Market

    We go over the ground rules and available resources needed for this undertaking.
  2. Forex Education

    Top 7 Questions About Currency Trading Answered

    Whether you're puzzled by pips or curious about carry trades, your queries are answered here.
  3. Forex Education

    Using Double Tops And Double Bottoms In Currency Trading

    Find out how to apply the two most common price reversal patterns to your trading.
  4. Forex Education

    Forex: Money Management Matters

    Currency trading offers far more flexibility than other markets, but long-term success requires discipline in money management.
  5. Options & Futures

    Forecast The FX Market With The COT Report

    Three empirical findings on futures data can help currency traders determine buy and sell points.
  6. Investing

    Hedged ETFs That Help You Cushion Currency Impact

    If you’re an investor holding non-U.S. assets, the returns on your investments will be affected when you translate your investment from its local currency
  7. Mutual Funds & ETFs

    Tired Of Mutual Funds? Try This Alternative

    Mirrored investments services are a beneficial alternative to traditional mutual funds. Discover how they work and how they can be used to your advantage.
  8. Mutual Funds & ETFs

    Position Your ETF Portfolio For Success In 2015

    2015 may well usher in a new era in the markets where things like risk management, trend following, and asset allocation are key to a successful outcome.
  9. Investing Basics

    Hedge Fund Fees: Exotic Expenses

    Warren Buffett made a bet with Protégé Partners, a fund of funds hedge fund manager, that the S&P500 would beat a group of hedge fund managers selected by Protégé. The bet officially started ...
  10. Insurance

    What You Need To Know About Financial Analysts

    Thinking about relying on analyst recommendations for your next trade? We'll show you what to watch out for.

You May Also Like

Hot Definitions
  1. Sunk Cost

    A cost that has already been incurred and thus cannot be recovered. A sunk cost differs from other, future costs that a business ...
  2. Technical Skills

    1. The knowledge and abilities needed to accomplish mathematical, engineering, scientific or computer-related duties, as ...
  3. Prepaid Expense

    A type of asset that arises on a balance sheet as a result of business making payments for goods and services to be received ...
  4. Gordon Growth Model

    A model for determining the intrinsic value of a stock, based on a future series of dividends that grow at a constant rate. ...
  5. Cost Accounting

    A type of accounting process that aims to capture a company's costs of production by assessing the input costs of each step ...
  6. Law Of Supply

    A microeconomic law stating that, all other factors being equal, as the price of a good or service increases, the quantity ...
Trading Center