Functioning and Positioning

noun

• Process or manner of functioning or operating.
  • usage: "the power of its engine determines its operation"; "the plane's operation in high winds"; "they compared the cooking performance of each oven"; "the jet's performance conformed to high standards"
  • synonyms: operation, performance

verb

• Perform as expected when applied.
  • usage: "The washing machine won't go unless it's plugged in"; "Does this old car still run well"; "This old radio doesn't work anymore"
  • synonyms: function, work, operate, go, run
• Serve a purpose, role, or function.
  • usage: "The tree stump serves as a table"; "The female students served as a control group"; "This table would serve very well"; "His freedom served him well"; "The table functions as a desk"
  • synonyms: serve, function
• Perform duties attached to a particular office or place or function.
  • usage: "His wife officiated as his private secretary"
  • synonyms: officiate, function

adjective

• Performing or able to perform its regular function.
  • usage: "a functioning flashlight"

noun

• The act of putting something in a certain place.
  • synonyms: placement, location, locating, position, emplacement

verb

• Cause to be in an appropriate place, state, or relation.
  • synonyms: position
• Put into a certain place or abstract location.
  • usage: "Put your things here"; "Set the tray down"; "Set the dogs on the scent of the missing children"; "Place emphasis on a certain point"
  • synonyms: put, set, place, pose, position, lay

adjective

• Causing to fall into line or into position.
  • synonyms: aligning

positioning is the act of holding a financial instrument, one or more portfolios of financial instruments, or one's entire balance sheet in a way that exposes the holder to profits or losses from future changes in market prices. Positions may be taken with the intent to profit from expected future market changes (trading activities); may result from inventories of financial assets maintained for sale to customers (dealing activities); or may be the result of the net exposure from transactions (residual positions resulting from trading activities, dealing activities, or customer accommodations). Banks take positions in one of two ways: 1. In their trading accounts, banks (mainly large banks) may take positions with one or more financial instruments in the expectation of profiting from future rate changes. 2. More typically, banks hold or take balance sheet positions. The cumulative interest rate risk exposure from customer deposits, loans, and other activities creates a net residual position that the bank may or may not hedge. Choosing not to hedge is positioning. Alternatively, banks may create a position or add to a residual position in the expectation of profiting from them.