Square position,
Definition of Square position:
A square position is a situation where a trader or portfolio has no market exposure. It is commonly associated with foreign-exchange trading, but it can be applied to any type of market trade where offsetting positions can be held. A square position is also referred to as a "flat position.".
A "square position" refers to eliminating exposure to market risk and is normally achieved by closing out all existing positions.
Open position in futures trading that has been covered with a hedge.
Situation where cash inflows match cash outflows in a given period.
Situation where purchases equal sales revenue.
How to use Square position in a sentence?
- A "square position" refers to eliminating exposure to market risk and is normally achieved by closing out all existing positions.
- The term "square position" is commonly associated with foreign-exchange trading, but it can be applied to any type of market trade where offsetting positions can be held.
- Foreign exchange market makers, commonly known as dealers, generally seek to square their exposure in the currencies for which they provide liquidity.
Meaning of Square position & Square position Definition
