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could be silly

June 24 2003 at 4:17 PM
nathan 

 
This could be a dumb question....Ive been reading the archives as well as the new smart money reports and have a good grasp of the significance of the COTs. However I am clouded as to what is meant by being short the market or long the market. Does it mean different lengths of time the stocks are held or does it refer to options trading??

thanks

nathan

 
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Re: could be silly

June 24 2003, 4:50 PM 

Nathan,

As a wise person once said, there is no such thing as a dumb question.

To be "long" means that you have bought something and you own it. For example, you bought stocks or you bought an index like the S&P (SPY).

To be "short" means that you have sold something that you don't own with the expectation that it will go down so that you can buy it back at a lower price and pocket the difference in profits. Somewhere on this forum, in one of these threads, I went into some detail about the mechanics of selling short.

Nathan, I know financial language can be downright wierd. So if you ever see a word, term, or concept that you don't understand try Investor Words. It's an online financial dictionary and it has a definition of just about any financial term that I or anyone else might use.

Also, always feel free to ask on this forum. I or someone else will be very happy to help.

Larry

 
 
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