Trading Position: Types of Positions Based on Trade Direction and Holding Time

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  • Math

  • High School

  • 12th grade

  • Calculus and Advanced Math Concepts

  • English

Author's Instructions

In financial markets, a position refers to an open trade an investor holds in a financial asset this trade can take the form of a buy (Long) or sell (Short).

Every trade begins with opening a position, which plays a pivotal role in determining riskprofitability, and capital management.

Positions in trading are not limited to choosing entry and exitpoints they are directly connected to the trader’s psychology, capital management strategy, and overall portfolio composition.