Position Trading

Trade Mechanics

Holding trades for weeks or months based on fundamental views — the lowest-frequency trading style, exposed to accumulated swap costs.

Position trading holds trades for weeks to months (sometimes longer), based primarily on fundamental and macro views rather than short-term technical setups. It's the lowest-frequency trading style, requiring the smallest time commitment day-to-day but the largest tolerance for drawdown while a long-term thesis plays out. Because positions stay open for so long, swap costs (or income, on a positive-carry trade) accumulate meaningfully and become a real factor in overall returns.

Related terms

Carry Trade Drawdown Swing Trading

More in Trade Mechanics

Account Base Currency Bracket Order Break-Even Stop Cash Settlement CFD (Contract for Difference)Close By Order Contango and Backwardation Contract Size Contract Specification Day Trading Entry Signal & Exit Signal Execution Model

After Position Trading

GuideChoosing a Trading Platform: MT4, MT5, cTrader and the Broker's OwnThe platform decides which orders you can place, whether your stops survive a closed laptop, and how much you would have to rewrite to leave. What actually differs between the options — and the point where the platform stops mattering and the broker takes over.

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