Open Position

In investment, an open position is a trading position which is exposed to the market. Typically, a position is open until the assets making up the investment (stocks, currency, commodities) are sold.

Example: You purchase 10,000 Swiss francs worth of Canadian dollars. As long as you hold the Canadian dollars, your investment is exposed to fluctuations in the CAD/CHF rate. After you exchange the Canadian dollars for Swiss francs, the investment position is closed and your investment is no longer exposed to the market.

See also: Closed position

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