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Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › long and short
what is the concept of long and short in futures?
and when do we calculate lock in rate?
‘Long’ is when we buy first and then sell later.
‘Short’ is when we sell first and buy back later.
We use the lock-in rate when dealing in futures. It enables us to estimate in advance the net effect of the basic transaction and the gain or loss on futures.