What is the difference between Net Position and Day Position?

Net Position: This refers to the total position in a security after taking into account both the buy and sell transactions. It includes carry-forward positions from previous days and any current day’s transactions. Your net position reflects the total exposure you have in a stock or asset, including both open and closed trades over multiple days.

• Example: If you bought 100 shares of a stock on Monday, sold 50 shares on Tuesday, and then bought another 50 shares on Wednesday, your net position would be 100 shares (50 shares bought on Tuesday + 50 shares bought on Wednesday).

Day Position: This refers to the positions that are created and held within the same trading day and are closed before the market ends. It represents only the positions you’ve opened or closed during the current trading day.

• Example: If you buy 50 shares in the morning and sell them before the market closes, this is your day position. At the end of the day, your day position would be zero since it was closed before the market closed.