Net position is a financial term, which is usually used to describe investors' positions in financial markets. In futures, foreign exchange, options and other derivatives transactions, the net position refers to the sum of the positions held by investors in one or more markets.

Net positions can be divided into two categories:

1.NetLongPosition: refers to the difference between the number of multiple orders (buy) held by investors in the market and the number of empty orders (sell). When the number of multiple orders is greater than the number of empty orders, the net long position is positive; When the number of multiple orders is less than the number of empty orders, the net long position is negative.

2. NetShortPosition: refers to the difference between the number of empty orders held by investors in the market minus the number of multiple orders. When the number of empty orders is greater than the number of multiple orders, the clearance order is positive; When the number of empty orders is less than the number of multiple orders, the clearance order is negative.

The net position reflects the overall risk exposure of investors in the market. Generally speaking, the greater the net position, the greater the risk of investors in the market; The smaller the net position, the less risk investors have in the market. Investors can manage their net positions by adjusting their positions to reduce market risks.

For example, if an investor holds more than 20 lots in the futures market and 10 is empty, then the investor's net position is 10 (20- 10). If the change of market price is beneficial to investors, then the net position will bring profits to investors; If the market price changes in a direction unfavorable to investors, then the net position will bring losses to investors.