Position trading is an investment strategy in which a trader takes a position with the hope that the price of the security will rise, but without any intention of holding it indefinitely. A position trader would typically buy or sell securities for significantly smaller prices than those of long-term investors.

Traders hold positions for weeks or months at a time. As opposed to a momentum or swing trade, a position trader attempts to predict whether the present trend will continue for a longer period of time. Traders who are unable to trade regularly benefit from position trading: their profit potential is not affected, and they can earn significantly more than they would from regular trading. For long-term traders, short-term swings don't matter since they feel their long-term investment horizons will smooth them out. Unlike day trading, position trading is aimed at profiting from the primary trend rather than from the day-to-day fluctuations.