What is a long position?
Long position on financial markets represents the acquisition of security with the expectation that the asset will increase the value. It is the opposite that takes a short position, which is a bet that safety will reduce value, although one strategy can lead to profits. Investors can get a long position in several asset classes, including their own capital, commodities or currencies.
gaining a long position in shares reflects a positive sentiment surrounding the company. Mutual fund administrators are a group of investment advisors who broadly adhere to a long strategy. These money managers supervised common funds from more investors. These resources are allocated to different classes of assets and across multiple regions. Mutual fund administrators are paid for the protection and growth of wealth for a certain period of time, and one way to achieve this is to risk only minimal risks, such as gaining a long position in stocks or other assets and organizing investment over time.
The advantage of winning from a long position liesIn the fact that the investor cannot lose more than the initial value of the trade, while on the other hand, the potential gains are not limited. Although the shares lose all its value and the investor reaps any profits, except for fees paid to the stock broker there is no more on the hook. This is not the case when it will not be short. Short trade is often layered by lever effect, which is a debt that is borrowed to increase chances to a higher reward. However, if the trade is not as expected, the investor must still repay the borrowed funds, even if he has not earned any profits.
Most individual investors occupy long positions on stocks without equalizing this short trade position. Shortening is a sophisticated strategy that hedge fund managers widely use. By holding a long position in shares without ensuring investment with a short trade, it is considered a naked position .
Options market works similarly to futures. Options offer investors the right to take a long or toA rattling position, although the agreement does not bring any obligation for the investor to claim this possibility. This objection is what separates the possibilities from the futures contract. As the name suggests, the options agreement reflects the possibility to buy or sell an asset for a preset price and date. If the investor decides to buy an asset, he will take a long position in this option agreement.