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How should he understand the words "domestic stocks can only be long, while futures can be long and short"?

2024-09-11 07:33
I'm a newbie and I'm just learning about futures. I feel that some terms or concepts are quite abstract. Can you describe some of the terms of futures? Thank you very much!
1 answer
2024-09-11 08:57

The "long" and "short" in "domestic stocks can only be long while futures can be long and short" referred to investors buying stocks or futures contracts in the stock and futures markets and then selling stocks or futures contracts at an agreed price at a certain point in the future to obtain profits. In the domestic stock market, investors could only buy stocks but not sell them. This means that if the price of the stock held by the investor rises, they can only wait for the stock price to rise and then sell it. They cannot make a profit by selling the stock. On the contrary, in the futures market, investors could buy futures contracts and sell them at an agreed price at a certain point in the future to make a profit. Since the futures market price is usually higher than the stock market price, investors can make a profit by buying futures contracts and selling them when the price rises. In short, the "long" and "short" in "domestic stocks can only be long while futures can be long and short" referred to investors buying stocks or futures contracts in the stock and futures markets and then selling stocks or futures contracts at an agreed price at a certain point in the future to obtain profits.

I can't understand the long and short futures. Please explain the long and short futures with examples.

1 answer
2024-09-11 08:07

A futures contract is a financial derivative that can be traded by buying or selling a futures contract. In a futures contract, the buyer and seller agree to trade a commodity or asset at a specific price at a certain time in the future. Future trading can help investors buy or sell goods or assets at a fixed price at a certain time in the future, thus avoiding the risk of price fluctuations. For example, let's say an investor wants to buy cotton futures to offset the risk of fluctuations in cotton prices. An investor could buy a cotton futures contract, which meant that they agreed to buy cotton at a specific price at a certain time in the future. If the price of cotton rose, investors could sell the futures contract at a higher price at the end of the contract and make a profit. If the price of cotton fell, investors could sell the futures contract at a lower price at the end of the contract to avoid losses. It is important to note that futures trading requires investors to bear higher risks because they can buy or sell goods or assets at a fixed price at some time in the future. Therefore, investors should carefully assess their risk tolerance and decide whether to engage in futures trading according to their own needs.

There is a contract period for futures and stocks to be long and short, right?

1 answer
2024-08-23 11:54

There was a contract period for futures and stocks. In the futures market, investors can buy or sell futures contracts to buy or sell a commodity or asset at a specific price at a certain time in the future. In this kind of transaction, investors need to sign a futures contract that states how they should execute the transaction when it matures. In the stock market, investors can hold the ownership of certain assets by buying stocks. When investors wanted to sell the shares, they could sign a contract to sell the shares at a specific price. Similarly, when an investor wants to buy these shares, they can sign a contract to buy the shares at a specific price. In futures trading, the contract period usually referred to the holding time of the futures contract. In the stock market, the contract period usually referred to the time that an investor could hold the ownership of a certain asset.

How long should short stories be?

1 answer
2024-12-15 10:47

Short stories usually range from 1,000 to 7,500 words, but it can vary depending on the genre and the purpose of the story.

How long should a short story be?

3 answers
2024-10-17 18:30

A short story is typically around 1,000 to 7,500 words. But it can vary depending on the genre and the specific requirements of the publication or contest.

How long should a short story be?

1 answer
2024-10-16 11:19

It can vary, but typically a short story is around 1,000 to 7,500 words.

How long should a short novel be?

2 answers
2024-10-14 12:37

A short novel typically ranges from 20,000 to 50,000 words. But it can vary depending on the genre and the story's complexity.

How long should short stories be?

2 answers
2024-10-13 07:37

Well, there's no strict rule. Generally, short stories tend to be around 2,000 to 10,000 words. However, some can be shorter or longer depending on the style and content. It's more about telling a complete and engaging story within a limited space.

How long should a short story be?

3 answers
2024-10-11 03:59

It varies. Generally, a short story is often considered to be around 1,000 to 7,500 words, but there's no strict rule.

How long should a short story be?

1 answer
2024-10-11 02:15

Generally, a short story can range from 500 to 10,000 words. The length often depends on the style of writing and the intended audience. Some short stories are concise and focused within a few thousand words, while others might stretch a bit longer to explore the plot and characters more deeply.

How long should a short story be?

2 answers
2024-10-11 00:44

A short story is typically around 1,500 to 10,000 words. But it can vary depending on the style and the story's complexity.

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