Generally speaking, it is the amount of (or amount of exposure to) of a security, commodity, investment, or currency that held or owned by a person or entity. A position may also be established in an instrument such as a derivative (that in turn, gives an exposure to an underlying asset or variable).

In another context, and from the perspective of an entity’s financial statements, a financial position is the balances of its recorded assets, liabilities, and equity (broadly the elements of its statement of financial position/ balance sheet) at a specific point in time. The financial positions reflects the leverage, solvency, and cash standing of an entity which constitute the very underpinnings on which its continuity in operation depends.