Anonymous asked in Business & FinanceInvesting · 2 months ago

What are the differences between the long and the short in the stock and futures markets?

3 Answers

  • 2 months ago

    In the stock market a long position is stock that you own. The value of the position increases when the price of the stock increases. If you have a long position you are paid dividends issued to stockholders.

    In the stock a short position is created when you sell stock that you do not own. At some time in the future you will have to buy the stock to close the position. If you have a short position you have to pay dividends issued to stockholders.

    A future is a contract between two parties to trade a specified amount of an underlying security or commodity at a specified price at a specified time in the future. The party who has agreed to buy the underlying is long. The party who agreed to sell the contract is short.

  • 2 months ago

    Long - you own it//betting the asset appreciates

    Short - you have borrowed it and sold it hoping to buy it back at a lower price to return it//betting the asset depreciates

  • 2 months ago

    Time duration. Futures market is a part of the stocks exchange.

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