How Profits Are Made
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Question 1 of 10
1. Question
A long position has a limited loss of 0 dollars now, meaning that if we bought a stock and the stock is climbing up, we’re making a profit up […]:
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Question 2 of 10
2. Question
On the contrary, if the stock lost 100% of its value, meaning that when we bought it, it was […] dollars and now equals zero, then we lost our initial investment, which is the amount we’ve invested:
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Question 3 of 10
3. Question
Shorting a position means that we’re selling an asset intending to profit from a rising market:
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Question 4 of 10
4. Question
When in a short position, if the rate of the asset is dropping, the trade is in profit. If the rate rises, the trade will be in a loss:
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Question 5 of 10
5. Question
A short trade is limited to a $0 value:
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Question 6 of 10
6. Question
A short position alongside a downtrend on a specific asset delivers profit:
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Question 7 of 10
7. Question
[…] represent traders that buy an asset (long position) expecting to profit from an asset that will rise in price:
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Question 8 of 10
8. Question
[…] represent traders that trade against an asset (short position) expecting to profit from a weakening asset:
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Question 9 of 10
9. Question
If we have the same number of Bulls and Bears trading the asset — we will see a very small change in the asset’s price:
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Question 10 of 10
10. Question
If we have more Bulls than Bears — we will see a drop in the asset’s price:
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