The net position represents the open long and short holdings in a particular asset. The variation in a position at a specific time reflects the total number of long and short currency positions that have not yet been closed by offsetting transactions.

It can also refer to the dollar difference between the total market values of all long and short positions. Brokers frequently utilise this figure when assessing their risk exposure or the net trading exposure for a forex trader on a market level.

Understanding your net position is crucial as it allows you to determine potential profits when the value of your assets rises for either a net long or net short position.