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2 answers

Puts and calls are options, not shares.
A put is the option to sell a stock at a given price before a given time.
A call is the option to buy a stock at a given price before a given time.
Going short means you borrow shares from your broker and sell a stock, with the intention of buying it back at a lower price later.
Going long is just buying a stock.
Hedging is buying something as insurance in case you are wrong about the direction of a stock, a commodity, the market, etc.

Have fun!

2007-07-22 11:53:27 · answer #1 · answered by Insanity 5 · 0 0

ok its kinda hard to explain, but this is what i do for a living.
when you long something you are buying it or have already bought it.
when you are shorting it, you are selling it or have already sold it.
as far as puts and calls thats called options. they are very tricky and in order to trade those i suggest reading up on them.
a call is a buyer and a put is essentially a seller.
when you are buying calls you want the product price to go lower. and vice versa with puts. they have really weird spreads that you can do with them as well. again i suggest reading books on them.
hedging in my area of business is buying a futures position to protect the actual material you own from losing money

2007-07-22 18:49:44 · answer #2 · answered by Anonymous · 0 0

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