Glossary entry
A position is an existing holding or contractual exposure in a financial instrument, expressed by its direction and size. It may be long, short, or part of a combination of offsetting trades. Position records commonly track quantity, entry cost, current value, and realized or unrealized results, but the economically relevant exposure may require additional calculations.
Illustrative example
An account holds 30 shares bought at 12 and 20 more bought at 15. It has a 50-share position with an average purchase cost of 13.20.
What to consider
Order quantity, position quantity, and economic exposure are different concepts. Account for contract multipliers, currency conversion, and any offsetting holdings.
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