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Open position |
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Open positionAn obligation to take or make delivery of an asset or currency in the future without cover, that is, without a matching obligation in the other direction that protects them from effects of change in the price of the asset or currency. Aside from simple ownership and debt, an open position can be acquired or avoided using the forward market.Open positionA net long or short position whose value will change with a change in prices.Open position Similar MatchesSynthetic forward positionSynthetic forward positionA forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market. Covered positionCovered positionUse of an option in a trading strategy in the underlying asset is already owned. Synthetic positionSynthetic positionA hedging strategy combining futures and futures options for price protection and increased profit potential. For example, by buying a put option and selling (writing) a call option, a trader can construct a position that is similar to a short futures position. This position is known as a synthetic short futures position, and shows a profit if the futures prices decline, and receives margin calls if prices rise. Synthetic positions are a form of arbitrage. Clear a positionClear a positionTo eliminate a long or short position, leaving no ownership or obligation. Position limitPosition limitThe maximum position, either net long or net short, in a futures market or options market that may be held or controlled by one person as prescribed by an exchange or by the CFTC. Such limits can be set for individual expiration months, such as the spot month, and for all listed expiration months combined. Since hedgers are often exempt from such limits, position limits are often termed 'speculative limits'. Further SuggestionsSpread positionLong position in an option Interpositioning Position Take a position Disposition of Real Estate Statement Long position Position limits long position Position building Positioning Position diagram Modigliani and Miller Proposition I Covered position Short position Position trader Miller and Modiglianis irrelevance proposition Discretionary Proposition Net position Position sheet Welfare proposition Core propositions Net foreign asset position Equilibrium position Foreign asset position |
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