From MarketsWiki
Jump to navigation Jump to search
The printable version is no longer supported and may have rendering errors. Please update your browser bookmarks and please use the default browser print function instead.

Position refers to the market commitment, or exposure, an investor or trader has made to a commodity or security, and is referred to as either a long (owned or bought) or a short (borrowed or sold) position. Such exposure is called an open position and becomes closed when the trader makes a transaction that removes the security/commodity.

In derivatives markets a naked (uncovered) position refers to an open long or short position the trader holds in a futures or options contract that doesn't have a opposite position in either the derivatives or the equity market. For example, a trader with call (sell) options in a stock is in a naked position if s/he doesn't have, for example, a long position in the underlying equity on the stock market.[1] Naked positions are also called uncovered or unhedged positions.


  1. Naked position. BusinessDictionary.com.