Naked Position
A naked position is an unhedged exposure, often in options or short selling, that can create large downside risk.
Trading-position terms for naked positions, open positions, and taking a market position.
Positions and position taking covers naked positions, open positions, and taking a market position.
Use this branch when the question is what exposure exists after orders, fills, and account records are considered. This content is educational and does not recommend taking or closing a position.
| Topic | Use it when the question is about | Evidence to check |
|---|---|---|
| Open Position | Exposure that remains active in an account | Position record, side, quantity, market value, entry price, and unrealized profit or loss |
| Take a Position | Entering exposure through a trade or strategy | Order ticket, execution report, instrument, side, quantity, and account record |
| Naked Position | Exposure without an offsetting hedge or covering position | Position record, hedge record, option or short exposure, margin requirement, and risk limit |
Position language should be tied to the account and instrument record. A planned trade, order entry, partial fill, and final open position can all differ.
Move to Margin Requirements and Exposure when equity or margin controls the conclusion. Move to Order Types and Execution when order instructions control how the position was opened.
For broader context, return to Margin Requirements and Position Exposure.
Choose a subsection first. Deeper term pages live inside each subsection, which keeps large topic hubs readable.
A naked position is an unhedged exposure, often in options or short selling, that can create large downside risk.
An open position is a trade or exposure that has not yet been closed, offset, expired, or settled.
To buy stock in a company with the intent of long-term holding or taking control, including regulatory requirements and strategic inventory management.