Financial Dictionary

This dictionary contains:
24549
financial terms

Position




Position

A market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into.

RELATED TERMS
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Market
1) The total demand for a good. 2) The set of all actual and potential buyers of a good or service. 3) The place where people buy and sell. 4) The process by which buyers and sellers of goods, services and factors of production interact to determine prices and quantifies.

Commitment
Describes a trader's obligation to accept or make delivery on a futures contract.

Transaction
A single business deal; a sale or purchase; or the crediting or debiting of an account.



SIMILAR TERMS
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Position building
Buying shares to build up a long position or selling shares to create a short position in a particular security or group of securities.

Position diagram
Diagram showing the possible payoffs from a derivative investment.

Position limits
Applies to derivative products. Maximum position available in any one future or option contract for a given institution. For "bona fide" futures hedgers, there are no position limits.

Position self
Used in the context of general equities. Going long or short in anticipation of a stock's movement.

Position sheet
Used in the context of general equities. List of long and short positions for an individual trader or desk, at times accompanied by the trades from the previous trading session that brought these closing positions.

Position sizing
The dollar value being invested into a particular security by an investor.

Position trader
A commodities trader who takes a long-term approach in maintaining positions in the market and does not close out of these positions until close to the delivery date.

Positive carry
A strategy of holding two offsetting positions, one of which creates an incoming cashflow that is greater than the obligations of the other.

Positive convexity
A property of option-free bonds that the price appreciation for a large downward change in interest rates will be greater (in absolute terms) than the price depreciation for the same downward change in interest rates.

Positive covenant (of a bond)
A bond covenant that specifies certain actions the firm must take. Also called an affirmative covenant.

Positive economics
Is concerned with the description and analysis of economic facts.

Positive obligation
A New York Stock Exchange rule that governs the behavior of specialists.

Positive volume index
An index that focuses on days where the volume has significantly increased from the previous day's trading.

Positive yield curve
When long-term debt interest rates are higher than short-term debt rates (because of the increased risk involved with long-term debt security).



PREVIOUS AND NEXT TERMS
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Portfolio separation theorem
Theory that an investor's choice of a risky investment portfolio is separate from his attitude towards risk.

Portfolio transaction costs
The expenses associated with buying and selling securities, including commissions, purchase and redemption fees, exchange fees, and other miscellaneous costs. In a mutual fund prospectus, these expenses are listed separately from the fund's expense ratio.

Portfolio turnover
A measurement of how frequently assets within a fund are bought and sold by the managers.

Portfolio turnover rate
For an investment company, an annualized rate found by dividing the lesser of purchases and sales by the average of portfolio assets.

Portfolio variance
Weighted sum of the covariance and variances of the assets in a portfolio.

Position

Position building
Buying shares to build up a long position or selling shares to create a short position in a particular security or group of securities.

Position diagram
Diagram showing the possible payoffs from a derivative investment.

Position limits
Applies to derivative products. Maximum position available in any one future or option contract for a given institution. For "bona fide" futures hedgers, there are no position limits.

Position self
Used in the context of general equities. Going long or short in anticipation of a stock's movement.

Position sheet
Used in the context of general equities. List of long and short positions for an individual trader or desk, at times accompanied by the trades from the previous trading session that brought these closing positions.

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This dictionary contains 24549 terms.







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