|
|
Foreign asset position |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Foreign asset positionThe amount of assets that residents of a country own abroad. Also used to mean the net foreign asset position.Similar MatchesModigliani and Miller Proposition IModigliani and Miller Proposition IA proposition by Modigliani and Miller which states that a firm cannot change the total value of its outstanding securities by changing its capital structure proportions. Also called the irrelevance proposition. Synthetic positionSynthetic positionA hedging strategy combining futures and futures options for price protection and increased profit potential. For example, by buying a put option and selling (writing) a call option, a trader can construct a position that is similar to a short futures position. This position is known as a synthetic short futures position, and shows a profit if the futures prices decline, and receives margin calls if prices rise. Synthetic positions are a form of arbitrage. Position diagramPosition diagramDiagram showing the possible payoffs from a derivative investment. Long positionLong positionOwning or holding options (i.e., the number of contracts bought exceeds the number of contracts sold). For equities, a long position occurs when an individual owns securities. An owner of 1,000 shares of stock is said to be "Long the stock." Related: Short position. Position traderPosition traderA commodities trader who takes a long-term approach in maintaining positions in the market and does not close out of these positions until close to the delivery date. Further SuggestionsShort positionInterpositioning Heckscher-Ohlin Core Propositions Open position Net foreign asset position Position Equilibrium position Positioning long position Core propositions Take a position Position sheet position limit Position building Welfare proposition Disposition of Real Estate Statement Covered position Open position Spread position Net position Clear a position Position limits Long position in an option Covered position Synthetic forward position |
|
|
|