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Position building |
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Position buildingBuying shares to build up a long position or selling shares to create a short position in a particular security or group of securities.Position building Similar MatchesPositionPositionA market commitment; the number of contracts bought or sold for which no offsetting transaction has been entered into. The buyer of a commodity is said to have a long position, and the seller of a commodity is said to have a short position. Related: Open contracts. Synthetic forward positionSynthetic forward positionA forward position constructed through borrowing in one currency, lending in another currency, and offsetting these transactions in the spot exchange market. Open positionOpen positionAn obligation to take or make delivery of an asset or currency in the future without cover, that is, without a matching obligation in the other direction that protects them from effects of change in the price of the asset or currency. Aside from simple ownership and debt, an open position can be acquired or avoided using the forward market. Covered positionCovered positionUse of an option in a trading strategy in the underlying asset is already owned. Core propositionsCore propositionsThe core propositions of the HO Model are the factor price equalization theorem, the Heckscher-Ohlin Theorem, the Stolper-Samuelson Theorem, and the Rybczynski Theorem, according to Ethier (1974). Further SuggestionsPosition traderInterpositioning Clear a position Miller and Modiglianis irrelevance proposition Position limits Net position Position sheet Take a position Heckscher-Ohlin Core Propositions Foreign asset position position limit Long position in an option Spread position Positioning Short position Modigliani and Miller Proposition I Discretionary Proposition Position diagram Disposition of Real Estate Statement long position Welfare proposition Open position Covered position Long position Net foreign asset position |
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