Friday, April 15, 2005
Long Position
Owning a commodity, aka buying it.
If the price of the commodity decrease with relative to the Long position, a loss will occur.
The purpose: buy cheap, sell high, but if buy high, sell cheap, rip the profit.
If the price of the commodity decrease with relative to the Long position, a loss will occur.
The purpose: buy cheap, sell high, but if buy high, sell cheap, rip the profit.
Short Position
Selling out.
Short position: selling out something at a predifined date. If the price of the commodity is higher than the short price, a loss will occur.
Short position: selling out something at a predifined date. If the price of the commodity is higher than the short price, a loss will occur.
