A position is an existing holding or contractual exposure created by executed trades. An unfilled order expresses an intention to trade; it is not yet a position for its unfilled quantity.
Describing the exposure
A position is identified by its instrument, direction, size and entry price. A spot holding represents ownership of an asset. A derivative position represents rights or obligations under a contract, potentially with margin and an expiry.
For example, buying 0.2 BTC on spot creates a BTC holding. Buying a derivative representing 0.2 BTC creates contractual exposure whose settlement and collateral follow that product’s rules. The same quoted quantity does not make the two economically identical.
Tracking and changing a position
Adding trades may increase size and change the average entry price. A partial close reduces exposure; a full close removes that position’s remaining contractual exposure or sells the relevant holding.
The account’s position mode determines whether an opposite derivative order reduces an existing position or can open a separate one. Monitor both gross and net exposure when several positions coexist. Unrealized gains, fees, funding and collateral requirements describe different aspects of the position and should not be treated as interchangeable balances.