Chapter 02 · Section 2.1

Short DM

Suppose you hear the following statement: "Victor is short 250,000 March Deutsche Marks" This statement means that:

a) Victor has bought DM 250,000 more than he has sold for delivery in March.
b) Victor has sold DM 250,000 more than he has bought for delivery in March.
• c) Victor lost DM 250,000 in March.
  No. Being short has nothing to do with the loss of an asset. Rather it is a term describing a net position

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