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September 24th, 2017, 09:28 AM   #1
Joined: Feb 2015
From: Springfield, Massachusetts, United States

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Who is considered long in this forward

In the example of an oil company selling you oil delivered later at a forward price locked in today, which one is considered long the forward?

I'm thinking that you're technically letting the oil company "borrow" the oil you would have otherwise bought so you're long? Since you also benefit from any increase in price?

Also, For a future value I only want the Spot effective, so would I leave out any carry costs in determining a value of the future at some point t>0?

Kevin Sly is offline  
October 23rd, 2017, 02:55 PM   #2
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"Which one is considered long the forward" makes no sense. It looks to me like you are confusing the concepts of "long" (or "short") with going "forward". They are not at all the same.
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considered, forward, long

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