The holding of foreign currency in the hope of a future sale is called a/an:
A) arbitrage position.
B) long position.
C) short position.
D) selling position.

Question

Quizplus · Accepted Answer

A long position refers to the holding of a currency with the expectation of selling it in the future at a higher price for a profit. Arbitrage position involves buying and selling assets simultaneously to take advantage of price discrepancies. Short position refers to selling a currency with the expectation of buying it back at a lower price in the future, while a selling position is not a commonly used term in foreign exchange trading.

The Holding of Foreign Currency in the Hope of a Future