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long and short

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › long and short

  • This topic has 3 replies, 2 voices, and was last updated 1 year ago by John Moffat.
Viewing 4 posts - 1 through 4 (of 4 total)
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  • March 3, 2024 at 8:11 pm #701872
    zaynnnn
    Participant
    • Topics: 29
    • Replies: 14
    • ☆

    what is the concept of long and short in futures?

    March 4, 2024 at 5:28 am #701883
    zaynnnn
    Participant
    • Topics: 29
    • Replies: 14
    • ☆

    and when do we calculate lock in rate?

    March 4, 2024 at 8:12 am #701900
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54656
    • ☆☆☆☆☆

    ‘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
    • Topics: 57
    • Replies: 54656
    • ☆☆☆☆☆

    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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