Trading glossaryReviewed 16 July 2026
Definition
Position trading holds an instrument across longer market cycles using a thesis, review schedule, and risk limits designed for an extended horizon.
In market context
The approach often combines fundamental drivers with broad technical structure and accepts more interim price movement than short-term trading. Longer holding periods increase exposure to financing, contract rolls, dividends, currency effects, policy changes, and thesis drift. Calling a losing short-term trade a position trade does not repair the plan; the horizon, evidence, instrument, size, and exit conditions should be defined before entry.
Source
Use the primary source for fuller regulatory or market context.