What is Position?

Question

What is Position?

Accepted Answer

A **Position** in FX and trading is the net market exposure, expressed as the amount of a financial instrument or currency pair that a trader or institution owns (long position) or has sold short (short position), reflecting their current commitment and directional bias in the market.

Position

What is Position?

What are the fundamental differences between a long position and a short position in the FX market?

How is position size calculated in foreign exchange trading, and why is it critical for risk management?

Why is the concept of a "flat position" important for market risk and regulatory reporting?

How do position limits and large position reporting requirements affect institutional FX trading?

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