Position (finance)

In finance, a position is the amount of a particular security, commodity or currency held or owned by a person or entity.

[1] In financial trading, a position in a futures contract does not reflect ownership but rather a binding commitment to buy or sell a given number of financial instruments, such as securities, currencies or commodities, for a given price.

[2] In derivatives trading or for financial instruments, the concept of a position is used extensively.

A trader holding a bull position will benefit when the price of the underlying goes up.

Net position is the difference between total open long (receivable) and open short (payable) positions in a given asset (security, foreign exchange currency, commodity, etc.)