Position

A position represents your total holdings in a specific prediction market and direction (YES or NO). If you buy shares multiple times in the same market, those purchases are grouped into one position.

Example

Market: "Will the Eagles win the Super Bowl?"

• Monday: Buy 50 YES shares at $0.30
• Wednesday: Buy 100 YES shares at $0.35
• Friday: Buy 50 YES shares at $0.40

These three purchases form one position: 200 YES shares with a total cost basis of (50×$0.30) + (100×$0.35) + (50×$0.40) = $15 + $35 + $20 = $70.

Open vs. closed positions

• Open: The market hasn't resolved and you haven't sold. No tax event yet (unless using Section 1256 mark-to-market).
• Closed: The market has settled or you've sold all shares. This triggers a taxable event.

Partial closes

If you sell some shares before settlement, you have a partial close. FIFO determines which shares were "sold" (the earliest purchases). The remaining shares stay open until settlement or another sale.