position building

position building definition - finance
The process of buying or selling shares of stock, futures contracts, options, or other investments in order to accumulate a long or short position. By gradually adding to a position over time, the trader avoids pushing the price of the stock or contract up. If a trader builds a position in a particular stock, he or she is betting that the price of that stock will rise and make the investment profitable.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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