Position definition

A position is the amount of a financial instrument a trader currently holds in an account. It represents open exposure to price movement in markets such as forex, shares, commodities, indices, and CFDs.

A position is either long or short. A long position is opened by buying and gains when the price rises; a short position is opened by selling and gains when the price falls. The position stays open until you close it, or until the broker closes it on expiry, a stop-out, or insufficient margin.

A position is the holding itself, not the instruction that creates it. The instruction is an order, and the position exists only once that order fills. Position size measures the holding in units, lots, contracts, or shares, and a larger size makes every price move worth more.