What is Position?
Updated: March 28, 2012 at 4:23 AM
Position Definition. Position can mean a singular holding or investment in a currency or refer to the netted total holdings of a given currency. The term is deliberately "currency" specific as can be true for a Net Position, which is the difference in a point in time of the total amount of long currency positions and short currency positions that have yet to be offset by opposite transactions. It can also refer to the dollar difference for the combined market values of all long and short positions. Brokers often use this value when they calculate their risk exposure or the net trading exposure for a forex trader on a market basis. However, brokers may vary how they apply these definitions based on analytical requirements that originate from either the trading or accounting department.
Risk Statement: Trading Foreign Exchange on margin carries a high level of risk and may not be suitable for all investors. The possibility exists that you could lose more than your initial deposit. The high degree of leverage can work against you as well as for you.