Core Position

In some cases, traders acquire a position as a medium-to-long-term hold, but also engage in more active trading in the same asset. The position that is held is know as the “core,” which means it is unaffected by the shorter-term trading activity. The objective is to preserve a certain position value in an asset expected to provide significant gains within an uncertain time-frame. Some traders maintain their core position(s) in a separate account from their trading activity to enhance discipline.