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?
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.
d) Victor must buy DM 250,000 before March.
"Long" illustrates ownership. If you are long, you are a net owner, you own more Deutsche Marks than you owe.
The fact that Victor is long means that he has bought Deutsche Marks and has not yet sold them.
"Long" is the contrary of "short"
Victor has bought DM 250,000 more than he has sold for delivery in March.