In finance, an investor's net position is the sum of his or her current, open, long positions minus his or her current, open, short positions in a given security. Long and short stock or security positions have opposing incentives and values. Net position calculations can be used by an investor to determine which type of position is superior.

In finance, a net position refers to the overall exposure an individual or entity has in a particular financial instrument or market. It is calculated by taking the difference between the total long positions (assets bought) and total short positions (assets sold or borrowed) held by the entity. The resulting net position indicates the directional risk and potential profit or loss associated with market movements.

For instance, in trading, if an investor holds more long positions than short positions, their net position is considered bullish, indicating an expectation of upward price movement. Conversely, a higher number of short positions implies a bearish sentiment, anticipating a decline in prices. Monitoring net positions is crucial for risk management and decision-making, allowing market participants to assess their exposure and adjust strategies accordingly based on market conditions and their risk tolerance.