Long position and short position meaning
Answers
Answered by
1
HEY mate ... here is your answer...
___________________/^^----/________
When speaking of stocks, if an investor has "long position" it means that the investor has bought and owns those shares of stocks. By contrast, if the investor has "short position" it means that the investor owes those stocks to someone, but does not actually own them yet. For instance, an investor who owns 100 shares of Tesla (TSLA) stock in his portfolio is said to be long 100 shares. This investor has paid in full the cost of owning the shares.
An investor who has sold 100 shares of TSLA without currently owning those shares is said to be short 100 shares. The short investor owes 100 shares at settlement and must fulfill the obligation by purchasing the shares in the market to deliver. Oftentimes, the short investor borrows the shares from a brokerage firm in a margin account to make the delivery. Then, with hopes the stock price will fall, the investor buys the shares at a lower price to pay back the dealer who loaned them. If the price doesn't fall and keeps going up, the short seller may be subject to a margin call from his broker.
Thankyou..
HOPE IT HELPS YOU....____----♀♀♀♀
___________________/^^----/________
When speaking of stocks, if an investor has "long position" it means that the investor has bought and owns those shares of stocks. By contrast, if the investor has "short position" it means that the investor owes those stocks to someone, but does not actually own them yet. For instance, an investor who owns 100 shares of Tesla (TSLA) stock in his portfolio is said to be long 100 shares. This investor has paid in full the cost of owning the shares.
An investor who has sold 100 shares of TSLA without currently owning those shares is said to be short 100 shares. The short investor owes 100 shares at settlement and must fulfill the obligation by purchasing the shares in the market to deliver. Oftentimes, the short investor borrows the shares from a brokerage firm in a margin account to make the delivery. Then, with hopes the stock price will fall, the investor buys the shares at a lower price to pay back the dealer who loaned them. If the price doesn't fall and keeps going up, the short seller may be subject to a margin call from his broker.
Thankyou..
HOPE IT HELPS YOU....____----♀♀♀♀
Similar questions
Social Sciences,
8 months ago
Biology,
1 year ago
Geography,
1 year ago
Biology,
1 year ago
Biology,
1 year ago