Updated on March 15, 2023
Position refers to taking a stance by either buying or selling a security based on the price trajectory and their individual forecast. In trading, a trader can take one of two positions namely, a long position and a short position. A long position is an act of buying a security to potentially sell it at profit at a future date.
On the other hand, a short position is an act of selling security first with the anticipation of squaring it off by buying the security at a lower cost to earn profits.
Seasonal traders usually take multiple trading positions on a single day or the trading week or their target period and analyse their performance at the end of such period by considering the net outcome of all such positions.