Starting out
Position
Everything you currently hold in one investment, however many separate purchases built it up.
How it works
If you bought the same share three times, you have three purchases and one position. The position is the total: total shares, total cost, and a single weight in the portfolio.
The distinction matters because the two levels answer different questions. The position tells you how exposed you are. The individual purchases tell you what you paid, when, and which of them are showing a gain — which is what tax and realised profit are computed from.
Where it misleads people
Averaging three purchases into one cost figure hides the shape of the holding. A position that looks flat overall can be one large winning purchase and two losing ones, and those are very different situations.
Related terms
- Cost basisWhat you actually paid for a holding, including fees — the number every gain or loss is measured from.
- Tax lotOne purchase of a security, tracked separately with its own date and price.
- WeightHow much of your portfolio one holding represents, as a percentage of the total value.
- Average costTreating all purchases of one security as a single pooled holding at a blended price.
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Educational reference only. Nothing here is investment advice or a recommendation to buy or sell anything, and tax treatment depends on your own circumstances and the country you are in.