I want to know the meaning of the phrase 'long short'. Could you explain it to me in simple terms or provide an example to help me understand its usage and context?
6 answers
Giulia
Mon Dec 02 2024
Owning a "long" position in a security implies that you are the holder of that security.
Federico
Mon Dec 02 2024
When an investor takes a "short" position, they essentially sell a stock that they do not own.
EnchantedSeeker
Mon Dec 02 2024
Investors hold "long" positions in securities with the anticipation that the value of the stock will appreciate in the future.
Michele
Mon Dec 02 2024
This is usually done through borrowing the stock from a broker or another investor.
Michele
Mon Dec 02 2024
They buy the stock believing that it will increase in price, allowing them to sell it later at a profit.