Open position

A margin trade you have not yet closed out

In detail

An open position is a margin trade, long or short, that has not been reversed yet. Profit and loss keep moving until it is closed, and interest or stock-lending fees accrue every day it stays open. Margin accounts with a repayment deadline require the position to be settled when that date arrives.

Example

Buying 1,000 shares at $1,000 on margin leaves a long position worth $1 million.

Related terms

Margin trading Short selling Margin call Closing trade

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For learning, not investment advice. Decisions are your own.