Forex Dictionary Terms

Trading Position

Posted on

Definition – What does Trading Position mean?

A trading position is directional trade on a currency pair that a forex trader holds longer term. The trade can be short or long a particular currency, and is usually prompted by some form of fundamental analysis or news event.

ForexTerms explains Trading Position

Logically, a trading position and a trade are the same thing. When a trader buys or sells a currency pair, he is making a trading or, put another way, taking up a trading position. The difference between the two is the implied period of time during which the trade will be kept open.

A trade is generally seen as shorter term and a trading position is seen as longer term. However, longer and shorter term are relative to the type of forex trader. A day trader may consider a trade held for hours to be a trading position, whereas a fundamental trader may only use the term for a trade that is held open for days.

Other Terms

Random Articles