Lexicon

In the financial realm, 'position' refers to the cumulative net exposure an investor or trader holds in a particular currency. This exposure can manifest in three distinct forms: flat or square, where there is no active exposure to currency fluctuations; long, indicating a scenario where a greater quantity of the currency has been purchased than sold; and short, denoting a condition in which more currency has been sold than bought. Each type of position reflects the trader's strategy and expectation regarding future currency price movements.