Position is simply where you are sitting in relation to the dealer's button. In holdem and many other poker games, your position at the table is a big factor. The strength of your position comes from the fact that the betting goes in a clockwise fashion. In a favorable position you get to see how many other players react to their hands and whether they fold, bet, or call before you do. The poker phrase, "Position is power" comes from this simple idea.

There are many names associated with position to identify where players are sitting in relation to the dealer's button. Each particular position has its own strengths or weaknesses.
- The player to the left of the dealer is not only the small blind, but must act first after the flop.
- The player to the left of the small blind is the big blind. He or she is already obligated to the game and is in another early position after the flop.
- The player to the left of the big blind is "under the gun". This player is the first to act preflop and is considered to be in the worst position, even though they do not act first in any other betting round (the blinds would) because they would have to invest an entire bet to get into the action.
- The player with the dealer's button is the last to act after the flop and has the most advantageous position. They are called "the dealer", "on the button", or just "the button".
- The player to the right of the button is called "the cutoff", which comes from the fact that this position is one of the best for blind-stealing at a full nine-handed or ten-handed table. This player often cuts off the dealer by betting before they have a chance to bet.
- Players in all positions are referred to as being in early, middle, or late position. Players in an early position are the first ones to act in a betting round (like the player under the gun) and late position players (like the cutoff and the button) are some of the last to act.

The importance of your position varies on many factors. For example, in no limit holdem position is much more important than in limit holdem. It is always better to be in an late position though, so it is important to identify what hands are generally playable in all positions.

For example, lets say you're under the gun. You have Queen-Ten, unsuited and decide to limp into the pot. The player to bet after you raises, and everyone but you folds.. Now you're in a jam. Chances are good that this player has a better hand than you. If they have any ace, king, or pocket pair, they are statistically better than you. You'd suspect that someone who raised has at least a hand like that. Now you can either call again and go into the flop as an underdog or you can fold and just give up a bet. What's worse is that if you call, you will be acting before this player for the rest of the hand. On the other hand, let's say you're on the button. You have Queen-Ten, unsuited and everybody folds to you. One option would be to fold and let the blinds fight it out. Another would be the just call and see what happens on the flop. Many players here would raise because you could steal the blinds and even if you didn't, you'd act after them for the remainder of the hand. Raising is only a viable option because of your favorable position.

Another notable factor is that position goes hand in hand with knowing the players directly around you. For example, an aggressive, blind-stealing player to the immediate right of a tight player usually results in the tight player's blinds getting stolen.

Being in late position with a good hand has major strengths over being early with a good hand. Early position raisers are assumed to have a good hand and it tends to scare players away. Early preflop raises force opponents to call two bets at once (at least in the case of no limit) with nothing in the pot yet. In late position, there may be players who have already called one bet. Those players only have to call one bet (in limit) with a little something already in the pot. So players in late position with a good hand have the ability to manipulate the pot size, which will make future bets easier to call in the upcoming betting rounds.

There are great discussions about position in poker by some reknowned players and authors. PacificPoker is actually offering one of these books, "Winning Low Limit Holdem" by Lee Jones for free just for playing on their site.