Flat Position

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Definition – What does Flat Position mean?

A flat position refers to a trade where the currency pair being traded hasn’t moved strongly up or down. Because there is little price action, a flat position generally doesn’t have a large loss or gain associated with it. Flat positions may reflect market conditions or overly broad trade parameters.

ForexTerms explains Flat Position

A flat position may simply be the result of a sideways market where neither buyers or sellers are significantly moving the market. Alternatively, a flat position can be created when a trader has set the take profit and stop-loss orders so far from the pip range that neither order is likely to be executed given the current price action. The latter is a matter of perspective because the position is not truly flat – it is just not active enough to trigger the trader’s orders.

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