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Dealing Position: Exchange Position, Cash Position

In financial trading and investment, a dealing position refers to the ownership or exposure to a particular financial asset or instrument. There are two types of dealing positions: exchange position and cash position.

An exchange position refers to the ownership of a particular financial asset, such as stocks, bonds, commodities, or currencies, that is held in a trading account at an exchange. The exchange position is recorded on the exchange’s trading platform and represents the actual ownership of the asset.

On the other hand, a cash position refers to the amount of money held in a trading account, which can be used to buy or sell financial assets. A cash position does not represent ownership of any specific financial asset but rather the ability to take a trading position using available funds.

In summary, an exchange position represents ownership of a particular financial asset, while a cash position represents available funds that can be used to take a trading position. Traders and investors need to manage both types of positions carefully to optimize their investment returns and manage risk.