The difference between the open long contracts and the open short contracts a trader holds in a specific instrument or asset. For example, if a trader has 10 long contracts (say long futures) on 2 January and 6 short contracts (short futures) on 3 January, the net position of the trader on 3 January is:
Net position= open long contracts – open short contracts
Net position= 10 – 6 = 4
