1: position definition
2: how position works
3: position vs portfolio
4: example of position
Opening information:
Position means when something or matters is located in one place or location for some purpose.
The location must have to give some status to prescribe something, otherwise, it wouldn’t be a position.
Status means what it means. And what is the standard? What is it for? That’s it.
This article provided information about what is a position, how a position works in the stock market, what is the difference between a position and a portfolio, and finally the example of a position.
1: position definition
Keep knows when there is a company, there must be management. Every Company’s management had different positions of status in his work.
All the positions on the whole matter or machines would be for one purpose, but each position must vary from one another.
When there is no structure or difference in the location of status, then it wouldn’t be a position. The position must have its unique way of showing its structure consistently.
Say the management had hundreds and thousands of employees. But all employees are not the same, they would have different statuses, structures, and differences among them.
The CEO of the company couldn’t play the marketing manager role in the company, marketing manager couldn’t play the CEO role in the industry.
The same applies to every type of employee inside the company, no one couldn’t play any role when they are not. Because each of the differences and structures is called a position.
So the position is the one, created by the management, no the one creates themselvand es, when anyone is taken out of the position, they lose the position. And when someone is put in a position, they gain their position.
This same position is applied to the stock market, so let’s see how it works.
2: how position works
When there are no employees, there is no company. So when there are no securities, there is no stock market.
But all the Securities in the stock market didn’t have the same structure and purposes in the stock market.
There are lots of different structures, needs, and growth in every security. The Securities that contain ownership of shares won’t have a debt interest payment like bonds.
So the bond securities won’t become derivatives of Securities.
Because derivatives work differently and have a unique structure.
At the same time, the derivatives won’t become currencies and currencies couldn’t become cryptocurrencies.
This security is like employees of the company, the Securities types are bonds, stocks, and derivatives are like different status location levels of research Managers, CEOs, and auditors of the management.
All types of Securities have different structures and locations, so it’s are different types of Positions in the market.
But no position would be the same, the elements of the position might be the same because of the same level structure inside one Position.
The positions vary in structure, if any of the positions vary from one another, then they won’t be in the same position.
The stock Investor Mr. Jack who bought the stock of the company would have one position, and when the Investor invested in the bond, the Investor had two different positions.
On the other side when the derivatives of the Securities are bought by the jack. The jack had three different positions in the investment account.
Because each of the three positions had three different structures and values. So it’s all called Position.
But the position and portfolio are not the same things, so let’s dive into the difference between the position and portfolio.
3: position vs portfolio
Positions are the ones which occupy different values and statuses in the Matter such as bonds, stocks, derivatives of options and futures, commodities, currencies, digital crypto extra…
Portfolios are the which occupy all these positions in one place or in one account to maintain and track the price range and worth of the current investment.
So the key difference between the position and portfolio would be, that positions are created by purchasing specific securities but portfolios are used to store a certain position in one account.
To make more clear about the position let’s dig into the example for the position.
4: example of position
Let’s say you had an investment brokerage account that contains lots of different securities available for purchase.
These different security had different positions in their place. But you had not created any new position for your account.
It doesn’t matter if you bought or didn’t purchase any securities of stocks, each security had some position in the market.
When you purchased a Securities you created a new position inside your investment account. Then when you bought multiple securities you had multiple positions in the same one account.
Non-Market rule: #100105
Position is based on the market rule, they are typically a broad term that isn’t fixedly used for the stock market, it also refers to discrete meanings such as employees’ position in an industry, stock position, and many more distinct views.
So be careful about making an investment decision solely based on someone’s or some trade position. If your investors and not comfortable or align investing with based on market rules please learn about how to regulate your investments under your control with the use of Rule investing.