TeachMeFinance.com - explain position
position -- a market commitment to go long (buy) or short (sell) a security or commodity. It also refers to the amount of securities or commodities owned (long position) or owed (short position).
Position -- In dealing in futures (contracts maturing in the
future) in grain, cotton, coffee, etc., it is the practise
to designate the contracts by the names of the months
in which they mature. Thus, wheat sold for delivery in
January is called January wheat ; cotton sold for delivery in
July is called July cotton, and so on. The outlook in the market
for the different months is called the position. Thus, if the
market for January wheat is strong it is customary to say that
the January position (in wheat) is strong; or, if the market for
July cotton is weak it is customary to say that the July position
(in cotton) is weak.
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Author: Mark McCracken is a corporate trainer and author living in Higashi Osaka, Japan. He is the author of thousands of online articles as well as the Business English textbook, "25 Business Skills in English".
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