What is a pure position?
In finance, the pure position of the investor is quite contemporary, open and long positions that owns, calculated against its overall current, open and short position in the security. Long and short positions in stocks or securities have opposite incentives and values. An investor who wants to see which type of position is larger can use the calculations of a clean position.
A short or long position in stock or security is referred to as "open" if it is owned by the investor. When the investor sells it, the position is considered “closed”. When the position was closed, investors calculate the return compared to the cost of the cost to find out how much they benefited from the sale.
Long position in shares or other security is the traditional purchase of this particular stock, where the owner benefits from the increase in the price of the shares if he sells the stock higher later. The short position includes some complex transactions where the position holder uses “Oblídení to sell” to benefit from the CE reductionNY shares. These two types of positions are obviously in the conflict and effectively cancel each other, due to the identical sales time for both. A pure position can show which position has a greater comparative value.
If the investor has long and short positions in the same events, the clean position can be extremely valuable. Automatically calculated clean position can help traders who have a large volume of positions in one or more securities. Simplify the balance sheet can help the investor make the right decisions on purchasing and selling positions.
It is important to realize that a pure position can also refer to a person or ownership of a company in various assets. Here, the pure position can be useful in displaying the total value of the asset in the business balance sheet. This type of May calculation is called a "pure economic position" or "net value of assets against the obligation".
Software products that includeThese types of pure calculations are becoming increasingly popular with individuals and businesses who invest in a more complex way. With all complex positions biased in today's markets, pure positions can become a more useful and necessary part of the organization of profitable potential for individuals or interest companies. Financial software providers create net calculation features into products to help make life easier for those looking for profits in short and long positions.