" Going long means you are buying something (whether it be shares, futures, options etc.) in the expectation of the price rising and therefore being able to sell later at a profit.
Going short means you are selling something because you think the price will fall and therefore you will be able to buy back later and make a profit."
how does the above affects borrowing and investing?
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reply to J13Q3(c)
9y ago#1If you are borrowing or investing then you are at risk due to changes in the interest rates.
One way of hedging against the risk is to use interest rate futures, and you can either buy them now and sell them later, or alternatively sell them now and buy them later. Which you choose depends on whether you are borrowing or whether you are investing.
This is all explained in full (with examples) in my free lectures on interest rate risk management.
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