Flat Position

A flat position refers to a situation where a trader has no active trades in the market—they are neither long (buying) nor short (selling) any assets. Being flat means the trader is not exposed to market risk at that moment. Their account is fully in cash or settled equity. This is a common state for traders who are waiting for the right opportunity. It also applies to those who have closed all positions to avoid uncertainty, such as during major news events or volatile conditions.

Staying flat can be a strategic decision, especially for risk management. It allows traders to step back, reassess market conditions, and avoid losses. In trading journals or commentary, you might hear someone say, “I’m flat.” This means they are temporarily out of the market and observing rather than participating.

Browse through other terms in our Trader’s Dictionary.