Net Position
a.k.a. Net exposure
What's left after you offset all your buys and sells in the same instrument: your true exposure.
In plain English
What's left after you offset all your buys and sells in the same instrument: your true exposure.
Your net position is the bottom line of everything you hold in a market. Long 3 lots of EUR/USD and short 1 lot? Your net position is long 2 lots. That is the amount actually exposed to the next move.
It gets trickier across pairs. Long EUR/USD and long GBP/USD are two different trades, but both are a bet against the US dollar. Adding up your net exposure to each currency, not just each pair, keeps you from accidentally tripling the same bet.
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