Open Position Definition. An Open Position describes the status of an account that has existing active trades with specific obligations thereto that have not been offset by corresponding trades of an equal and opposite deal amount. In the futures market, it can mean the total number of futures contracts entered into a specific trading period or delivery month that have not been liquidated or covered by a futures transaction of the opposite type or by the actual physical delivery of the commodity or currency. An Open Position is also referred to as Open Interest. The offsetting transaction is necessary to shield the trader from the effects of a future change in price of the commodity or currency.
Forextraders' Broker of the Month
ForexTime (FXTM) is an award-winning platform that certainly has the feeling of being set up by people who know what they are doing. The firm demonstrates an understanding of what helps traders make better returns, and its success can be measured by the fact that it's doubled the number of clients it supports in recent years. The fact that the broker has grown to have more than two million accounts suggests it is getting things right for clients.