Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. You could sustain a loss of some or all of your initial investment and should not invest money that you cannot afford to lose. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.

Position definition

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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