Online Brokers - Alternative Investments: Hedge Funds

Tags:: Online Trading Brokers Hedge Funds Alternative Investing

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By: WallStreetE
Subscribers: 2
Updated: 02-Apr-09
Videos: 74

English
Comments: 0
Views: 183
Added: 03-May-08

Hello, financial daredevils… in our search for alternative investment choices – we’re going Over the Hedge. Fund. “Hedging” means taking both long and short positions. You’re thinking am I confused or is she talking football. When we talk stock, “going long” means you buy shares and hold onto them - because you think they’re going to go up. If you take the “short position” - you borrow shares and sell them, expecting the price to drop. Here’s where you get wily – you “rebuy” those shares at a lower price and then return them, making your profit. THAT’s “hedging your bets”. THAT’S what a hedge fund does.