Forex trading involves risk. Losses can exceed deposits

Position definition

Forex trading involves risk. Losses can exceed deposits

What is a position?

A position is the expression of a market commitment, or exposure, held by a trader. It is the financial term for a trade that is either currently able to incur a profit or a loss - known as an open position - or a trade that has recently been cancelled, known as a closed position. Profit or loss on a position can only be realized once it has been closed.

A position is defined by size and direction. This means that your position can vary depending on quantity of the asset, and whether you are buying or selling the asset. There are two main types of positions: long positions and short positions. A long position aims to make a profit when an asset's price decreases.

Positions are the way in which a trader will hope to make a profit - a position is profitable or unprofitable depending on whether the market price moves in favor of, or against, the trade.

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