Chapter 02 · Section 2.1
Long DM
Now look at the opposite case: "Victor is long 250,000 March Deutsche Marks" What is the meaning of this statement?
d) Victor must buy DM 250,000 before March.
No. If Victor is long, he has already bought more than he has sold for delivery in March. He is the legal owner of DM 250,000 although delivery and payment will take place at a later date.
a) Victor will have to take delivery and pay for DM 250,000 in March.
b) Victor must deliver DM 250,000 in March.
c) Victor must sell DM 250,000 before March.
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