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Open position: Easy explanation. [Video]

Open position: Easy explanation.

In this video, you will learn what an open position is.

#openposition #financialmarkets #wallstreetmojo #long #short

Chapters:
00:00 – Introduction:
00:30 – What is open position?
01:52 – Open position in trading
02:26 – Open position in forex
03:06 – Conclusion

What is an open position?
An open position is when a trader or an investor has either gone long or short on any financial asset and hasn’t yet squared off or closed the position.

The duration of these open positions will vary with investors and traders.

A commonly used similar terminology is open interest, which is used in the futures market. Open interest basically shows how many futures contracts are still open, i.e., haven’t been closed, settled, or exercised yet.

Open position in trading
Traders often use the open position stat to know how heavily market participants are shorting a company’s shares.

If the number increases or decreases, that gives more insight, and they can trade accordingly.

Open position in forex
Forex trading has an important concept known as the open position ratio, which is the open interest ratio for a specific currency pair to the total number of positions held on all major currency pairs.

This was all about an open position. Don’t forget to give this video a like and subscribe to the channel so that you don’t miss out on our content.

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