Cryptocurrency Q&A How does a long-short strategy work?

How does a long-short strategy work?

KatieAnderson KatieAnderson Sun Dec 01 2024 | 7 answers 1788
I'm interested in understanding the mechanics of a long-short strategy. Could you explain how this investment approach operates, including how investors use it to potentially profit from market movements? How does a long-short strategy work?

7 answers

SakuraDance SakuraDance Tue Dec 03 2024
This strategy involves purchasing stocks that are believed to be undervalued.

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JejuJoyfulHeartSoul JejuJoyfulHeartSoul Tue Dec 03 2024
Simultaneously, it entails selling short those shares considered overpriced.

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Chiara Chiara Tue Dec 03 2024
By doing so, investors aim to profit from both upward and downward movements in stock prices.

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Lucia Lucia Tue Dec 03 2024
Long-short equity strives to enhance the returns of traditional long-only portfolios.

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GeishaCharming GeishaCharming Tue Dec 03 2024
Long-short equity represents an investment approach aimed at capitalizing on market inefficiencies.

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