That is 'Long (or Long Situation)' Information:
Purchase of safety, such as a stock, goods or currency with expectation is long (or long situation) that the asset will raise in cost. In the context of options, long purchase of the contract of options. The investor who expects that the price of an asset will fall, will long go on the placed choice, and the investor who hopes to benefit by the ascending dynamics of the prices, the option will be long.
Long situation - contrast short (or a short position).
2019 - Long (or Long Situation) Bank card, Credit online, Lending
Long (or Long Situation) Bank card, Credit online, Lending, Information - 2019
DESTRUCTION 'Long (or long situation)' Information:
With long investments into situation the investor buys an asset and owns him with expectation that the price is going to grow. He usually has no plan to sell safety in the near future. A key component of long investments into situation - property of a stock or the bond. It contrasts with investments into a short position where the investor doesn't own a stock, but borrows it with expectation of sale him and then his return purchase at lower price. The main difference between long situation and a short position in investments - that the investor expects to happen to the goods price.
For example, say, Jim expects that Microsoft Corporation (MSFT) will increase in the price, and acquires 100 shares of MSFT for his briefcase. Jim as therefore speak, is long 100 stocks MSFT. The movement long on a stock or the bond - more usual practice of investment in the markets of the capital.
It is also possible to go long under contracts of options. Purchase of the contract of options from the author of options grants the right to you to the right, not to the obligation to buy a certain asset for the specified sum in the specified date. The investor who is long an option, is that who buys a call with expectation that the main safety will increase in cost.
Consider an option on November 17 for Microsoft with the strike price of 75.00 and an award of 1.30. If Jim is optimistical concerning a stock, he can decide to buy or go long one option of MSFT (one choice = 100 actions) instead of acquiring shares directly as he made in the previous example. At the expiration if MSFT trades above 75.00, Jim will carry out the right on his long choice to acquire 100 shares of MSFT in 75.00.
Zanimaniye of a long position not always means that the investor expects to derive benefit of the ascending movement in the price of an asset or safety. In case of the placed choice the descending trajectory in the safety price profitable for the investor. Other investor, Jane who has long situation in MSFT for 100 actions in her briefcase now, but is bear on MSFT now, takes a long position on one placed choice. The placed choice trades for 2.15 and has the set strike price for 75.00 to expire on November 17. During the expiration if MSFT goes down lower than 75.00, Jane will carry out the long placed choice to sell her 100 shares of MSFT for the price of a strike of 75.00.
Investors and the companies can also enter long forward or the future contract to be insured against adverse dynamics of the prices. Business can use a long barrier to take in purchase price for goods which are necessary in the future. We will assume that the jeweler producer believes that price of gold is ready to feel tendency up in the short term. Business can enter the long future contract with the gold supplier to buy gold in three months from the supplier in 1,300. In three months, whether the price higher or lower than 1,300, business which has a long situation on gold futures is, is obliged to buy gold from the supplier at the coordinated contractual price of 1,300. The supplier, in turn, is obliged to put physical goods when the contract expires.
Speculators also go long on futures when they believe that the prices will raise. They not necessarily want physical goods as they are only interested in transformation into the capital from dynamics of the prices. Before the expiration the speculator holding the long future contract can sell the contract in the market.
Thus, going long on stocks, communication, futures and forward, specify that the holder of long situation is optimistical. However long situation on options expresses either optimistical or bear feeling depending on, whether the long contract is placed or a call.
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