Which of the following best describes the terms 'long position' and 'short position' in trading? A long position means expecting the asset's price to rise, and a short position means expecting it to fall. A short position is when a trader borrows an asset to sell, hoping to buy it back at a lower price, while a long position is when a trader buys an asset expecting its price to rise. A long position is when a trader sells an asset immediately, while a short position is holding it for a longer period. A long position indicates selling an asset, while a short position indicates buying it.
Which of the following best describes the terms 'long position' and 'short position' in trading? A long position means expecting the asset's price to rise, and a short position means expecting it to fall. A short position is when a trader borrows an asset to sell, hoping to buy it back at a lower price, while a long position is when a trader buys an asset expecting its price to rise. A long position is when a trader sells an asset immediately, while a short position is holding it for a longer period. A long position indicates selling an asset, while a short position indicates buying it.
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
Section: Chapter Questions
Problem 1PS
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Which of the following best describes the terms 'long position' and 'short position' in trading?
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A long position means expecting the asset's price to rise, and a short position means expecting it to fall.
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A short position is when a trader borrows an asset to sell, hoping to buy it back at a lower price, while a long position is when a trader buys an asset expecting its price to rise.
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A long position is when a trader sells an asset immediately, while a short position is holding it for a longer period.
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A long position indicates selling an asset, while a short position indicates buying it.
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