Isaiah Daniel659_ Jackson

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What is position trading in forex?

Position trading is a long-term strategy where traders hold positions for weeks, months, or even years, based on major economic trends and fundamental analysis. Unlike scalping or swing trading, position trading focuses on big-picture movements, such as interest rate cycles, GDP growth, or central bank policy shifts. Technical analysis is often used to refine entry and exit points, but fundamentals drive the core strategy. Position traders usually use low leverage, wide stop-losses, and large timeframes like daily or weekly charts. The advantage is reduced stress from short-term volatility, but the drawback is exposure to long-term risks and requiring higher capital. This style suits patient traders who want fewer trades but larger profit potential.