# Positions

> What a position on STX is, how it is created when your orders trade, and which outcome a bought or sold position needs.

Source: https://help.stxapp.io/articles/positions/

A position is created when your trades on a market leave you with more contracts bought than sold, or more sold than bought. STX adds up all your trades on the market into one position, so you don't need to track each trade.

- **Bought position:** you have bought more contracts than you have sold. It gains if the price rises and pays out if the outcome is YES.
- **Sold position:** you have sold more contracts than you have bought. It gains if the price falls and pays out if the outcome is NO.

You can close a position before settlement by submitting an offsetting order while trading is available, or hold it until the market settles. See [Trading and orders](https://help.stxapp.io/articles/trading-and-orders/) and [Settlements](https://help.stxapp.io/articles/settlements/).

You can lose the full amount committed to a position, plus applicable fees. See [Risk, security and support](https://help.stxapp.io/articles/risk-security-and-support/).