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In forex trading, the term “flat” or “square” refers to a situation where a trader has no open positions, meaning they have neither bought nor sold any currency pairs. Being flat is also referred to as having a neutral or balanced position in the market. Traders may choose to go flat if they believe that the market is uncertain or if they are awaiting a major news release or event that could impact the market. Going flat can also be a risk management strategy to limit exposure to market volatility.

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