I know when a team signs a type A free agent, they surrender a draft pick to the team that lost him.

If the Reds' finished the season today, I believe they would own the seventh overall pick in the draft.

What would happen if the Reds signed Bartolo Colon? Would they lose their first round pick to the White Sox, or would it be their second round pick?

I know it is usually the first round pick, but I'm wondering if a team's position in the draft influences the compensation.