Sunday, November 9, 2008

Longs and shorts.

OH. MY. GOD.

Simply put:
-A long call or a long put position is taken where the investor invests by BUYING an option to buy or to sell.
-A short call or a short put position is taken where the investor invests by SELLING an option to buy or to sell.

WHY DON'T THESE FINANCIAL PEOPLE EXPLAIN IT THAT WAY! I'm pretty stupid. Took me forever to figure that out. I credit my discovery to Wikipedia.

Basic Options Trading was pretty helpful as well if you're interested.
After AGES of puzzling over it (I've wanted to know since F9 but never understood what Ms. Geetha/our notes explained & now we have it in P2 but Menon was no help either), I KNOW THE DIFFERENCE between longs and shorts!!! It was worth the trouble.

1 comments:

Anonymous said...

sometimes something so easy they make it so complicated rite??? like law.. y dun they make words easy rather than making it so complicated.. not to not... y dun they say yes.. omg