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A chart of accounts (COA) is a list of financial accounts and reference numbers, grouped into categories, such as assets, liabilities, equity, revenue and expenses, and used for recording transactions in the organization's general ledger. Accounts may be associated with an identifier (account number) and a caption or header and are coded by ...
Going long vs. going short. The distinction between going long and going short is brief but important: Being long a stock means that you own it and will profit if the stock rises.
A long box-spread can be viewed as a long strangle at one pair of strike prices, and , plus a short strangle at the same pair of strike prices. The long strangle contains the two long (buy) options. The short strangle contains the two short (sell) options. A short box-spread can be treated similarly.
These are traded on futures exchanges such as the Chicago Mercantile Exchange, the New York Mercantile Exchange, or the London Metal Exchange among others. The spread is the difference between the simultaneous values of these futures contracts. Traders may use a combination of fundamental analysis, technical, and historical factors in their ...
The forward curve is a function graph in finance that defines the prices at which a contract for future delivery or payment can be concluded today. For example, a futures contract forward curve is prices being plotted as a function of the amount of time between now and the expiry date of the futures contract (with the spot price being the price at time zero).
Compared to the futures markets it is very difficult to close out one's position, that is to rescind the forward contract. For instance while being long in a forward contract, entering short into another forward contract might cancel out delivery obligations but adds to credit risk exposure as there are now three parties involved.
Effect of time: The price of an option tends to decline over time, meaning the passage of time works in the favor of the short call and against the long call, all else equal. FAQs about short ...
Typically, equity long/short investing is based on "bottom up" analysis based primarily on the analysis of the financial statements of the individual companies, in which investments are made. There may also be "top down" analysis of the risks and opportunities offered by industries, sectors, countries, and the macroeconomic situation.