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in stock markets these words (short position,long position,open interest) are used.what is meaning of these words.plz.give full details

2007-03-18 04:53:29 · 3 answers · asked by ANJU R 1 in Business & Finance Investing

3 answers

Short position is selling stocks in anticipation of their price going down in the future.
Long position is buying stocks in anticipation of the price moving up in future.
Open Interest is number of postion to be covered in the near future.
These are just definitions their techanicalities is another thing, like shorting you need to borrow and sell shares and at lower prices you will have to buy and replace these shares.

2007-03-18 05:56:54 · answer #1 · answered by Mathew C 5 · 0 0

Short Position Meaning

2016-12-16 20:35:37 · answer #2 · answered by ? 4 · 0 0

Short position ............. is the oversold position - you have 100 shares, but seeing the rise in the price you sell 200 shares. Now you are 100 short. In order to deliver 200, you have to buy 100 more or delay the delivery by paying charges for delay.

Long position ................ is the over bought position. You have 1000 Rs. and you can only 100 shares. Seeing that the prices fall, you buy 150 shares. now you have to either borrow money, to make payment for the purchase or delay the purchase by paying a fee for the delay.

Open Interest ................. is a term used in derivatives trading - i.e. options and futures . It refers to both the long and short position of a trader.

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2007-03-18 19:47:36 · answer #3 · answered by surez 3 · 0 0

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