Position trading refers to the strategy of a trader holding positions for a period of time - such as weeks or even years. As a long-term trading strategy, this method requires traders to have a macro understanding of the market and be able to withstand small market fluctuations that are opposite to their holdings.

Tools used

P position traders typically use a trend following strategy. They rely on analyzing data, especially slow moving averages, to identify market trends and determine ideal entry and exit points. They also use fundamental analysis to identify micro and macro conditions that may cause market fluctuations and the value of the assets traded. advantages and disadvantages

The success or failure of position trading depends on the trader's understanding of the market and their risk control ability. In order to lock in profits (and thus control potential losses), some position traders choose to use target trading strategies.