What is position?

 In the context of trading, a position refers to the amount of a particular asset that an investor has bought or sold. For example, if an investor buys 100 shares of a stock, they would be said to have a long position in that stock. If they subsequently sell those shares, they would be said to have closed their position in the stock.


A trader or investor may have multiple positions in different assets at the same time. For example, they may have a long position in a stock and a short position in a bond. A long position is one in which an investor expects the asset to increase in value, while a short position is one in which they expect the asset to decrease in value.


The size of a position can also refer to the total value of the asset held. For example, an investor who holds 100 shares of a stock with a market value of $50 per share would have a position worth $5,000.

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