Sentences with phrase «on a short position»

Any loss on short positions may or may not be offset by investing short - sale proceeds in other investments.

The speculation is that this can only be done by large participants because it is still very expensive for the average day trader to put on a short position in futures.

You will lose a lot of money on your short position.

You'll pay a higher premium on the long position than you will gain on your short position.

Another risk is that you would have to worry about a call on your short position, which is a very stressful situation to be in.

The variation margin is simply the running profit or loss being incurred on the short position.

That makes it all the more important to set a schedule of sizes on short positions.

The exit strategy on a short position should be guided by the upcoming support lines on the chart.

Set a time limit on your short positions at inception, and close out the positions no later than that.

In the event of a rally, these funds will lose money on their short positions but will experience a gain on their long positions.

If we are in a bear market and the investor is not opposed to short selling, we can look for stocks that will likely perform the worst, therefore making a nice profit on the short positions as prices fall.

Indeed, insiders at Kynikos (greek for «cynic») say that the market rally is viewed within the firm as a terrific opportunity for putting on short positions.

It is also possible to take on a short position and speculate on the price of the underlying futures contract going down and offsetting the position by buying back the exact same contract on the same exchange with the hope of making a profit on the change in price.

When trading in a downtrend on a short position, the approach is to set a stop loss just above the swing high since this could represent a potential resistance level.

I can't tell you how many times at meetings at the hedge fund we had tough discussion on position sizing, more frequently on short positions.

If you close a short sale at a loss by delivering shares you held at the time you entered into the short sale, your loss was incurred on the long position, not on the short position.

Similarly, when the market becomes bearish it is the time to sell and at this status, the trader must hold resistance on short positions with stop - loss; these positions must be squared off again when the market reaches neutral state.

With no limits to potential losses on short positions if Bitcoin continues to rise, Peterffy himself points out that betting against the cryptocurrency is especially risky, stating:

Although the turnaround in the stock's fortunes may only prove to be temporary, few short sellers can afford to risk runaway losses on their short positions and may prefer to close them out even if it means taking a substantial loss.

For example, to hedge one's long positions with short sales, so that if the market declines the loss on long positions will be offset by profit on the short positions.

If rates rise the gains on a short position in the futures can be reinvested at a higher rate.

Dwyer: Exactly, it's not easy to cash out bitcoin from an exchange and thus use to cover your unrealized losses on your short position.

Although the turnaround in the stock's fortunes may only prove to be temporary, few short sellers can afford to risk runaway losses on their short positions and may prefer to close them out even if it means taking a substantial loss.