Square position

Square position,

Definition of Square position:

  1. 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.".

  2. A "square position" refers to eliminating exposure to market risk and is normally achieved by closing out all existing positions.

  3. Open position in futures trading that has been covered with a hedge.

  4. Situation where cash inflows match cash outflows in a given period.

  5. Situation where purchases equal sales revenue.

How to use Square position in a sentence?

  1. A "square position" refers to eliminating exposure to market risk and is normally achieved by closing out all existing positions.
  2. 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.
  3. 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