The term "bar chord" means that the first finger acts as a bar (sometimes called a barre) across all, or some of the strings. The fact that there are no open strings in a bar chord means it is possible to move the one shape to any position on the fretboard and to play in every key. The term "position" refers to the fret your first finger is at.
For example, if your first finger is at the 3rd fret, you are in the third position. If your first finger is at the 8th fret, you are in the eighth position. The following diagram and photo demonstrate an F major bar chord (played in the first position). Notice that this chord is simply an E chord shape played with the 2nd, 3rd and 4th fingers, with a first finger bar behind it.
Bar chords can be difficult to play at first and will require a great deal of practice before they are comfortable to use. Try to keep the first finger of the left hand straight and parallel to the fret. It is also important to keep the other fingers arched and use only the tips of the fingers. The left hand thumb must be kept behind the neck.