|
|
Net position |
|
|
|
 Home Site Map Add Term Search About Us Contributors |
Net positionThe value of the position subtracting the initial cost of setting up the position. For example, if 100 options where purchased for $1 each and the option is currently trading for $9, the value of the net position is $900 - $100 = $800.Net position Similar MatchesMiller and Modiglianis irrelevance propositionMiller and Modiglianis irrelevance propositionTheory that if financial markets are perfect, corporate financial policy (including hedging policy) is irrelevant. Position diagramPosition diagramDiagram showing the possible payoffs from a derivative investment. Clear a positionClear a positionTo eliminate a long or short position, leaving no ownership or obligation. Take a positionTake a positionTo buy or sell short; that is to own or to owe some amount on an asset or derivative security. Short positionShort positionOccurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will drop. Further SuggestionsSynthetic forward positionHeckscher-Ohlin Core Propositions Covered position Net foreign asset position synthetic position Long position Core propositions Discretionary Proposition Position Disposition of Real Estate Statement Position building long position Open position Long position in an option Equilibrium position Modigliani and Miller Proposition I Position limits Position sheet Interpositioning Foreign asset position position limit Welfare proposition Spread position Covered position Position trader |
|
|
|