Position measuring method of an alignment target

A method of measuring a position of an alignment target on a substrate using an optical system. The method includes measuring a sub-segmented target by illuminating the sub-segmented target with radiation and detecting radiation diffracted by the sub-segmented target using a detector system to obtain signals containing positional information of the one sub-segmented target. The sub-segmented target has structures arranged periodically in at least a first direction, at least some of the structures including smaller sub-structures, and each sub-segmented target is formed with a positional offset between the structures and the sub-structures that is a combination of both known and unknown components. The signals, together with information on differences between known offsets of the sub-segmented target are used to calculate a measured position of an alignment target which is corrected for the unknown component of the positional offset.