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Notably, price wars can have some short term benefits for firms as it allows them to quickly turnover inventory, alleviate financial pressure, increase social purchasing power, and may compel firms to enhance their production efficiency. [6] But these short term gains are ultimately offset by long term losses.
If the price of the asset falls below the contract price, the short seller can buy it at the lower market value and immediately sell it at the higher price specified in the contract. A short position can also be achieved through certain types of swap, such as a contract for difference. This is an agreement between two parties to pay each other ...