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the following best describes the terms 'long forward position' and 'short forward position' in foreign exchange trading?   A short forward position is holding a currency for a short duration, while a long forward position is holding it for a longer period.   A short forward position means you have agreed to sell a currency in the future, while a long forward position

the following best describes the terms 'long forward position' and 'short forward position' in foreign exchange trading?   A short forward position is holding a currency for a short duration, while a long forward position is holding it for a longer period.   A short forward position means you have agreed to sell a currency in the future, while a long forward position

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Which of the following best describes the terms 'long forward position' and 'short forward position' in foreign exchange trading?

 

  1. A short forward position is holding a currency for a short duration, while a long forward position is holding it for a longer period.

     

  2. A short forward position means you have agreed to sell a currency in the future, while a long forward position means you have agreed to buy it in the future.

     

  3. A long forward position is when you expect the currency's future spot rate to decrease, and a short forward position is when you expect it to increase.

     

  4. A long forward position means you have agreed to sell a currency in the future, and a short forward position means you have agreed to buy it in the future.

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