long and short

This topic has 3 replies, 2 voices, and was last updated 2 years ago by John Moffat.

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March 3, 2024 at 8:11 pm #701872
zaynnnn
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what is the concept of long and short in futures?
March 4, 2024 at 5:28 am #701883
zaynnnn
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and when do we calculate lock in rate?
March 4, 2024 at 8:12 am #701900
John Moffat
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‘Long’ is when we buy first and then sell later.
‘Short’ is when we sell first and buy back later.
March 4, 2024 at 8:14 am #701901
John Moffat
Keymaster
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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.
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