Welcome to Commodity Challenge and our Tuesday Tip. My name is Ed Usset and our topic today is terminology. Bulls and Bears. Longs and Shorts.
Market Bulls are people that believe prices are going higher.
Bulls, if you will, use their horns to push prices higher and if you're bullish on the market, be it corn or soybeans, you want to own something you want to be long in the market, so you wanna buy futures or by call options something like that.
Market Bears, on the other hand, use their paws to push prices lower.
To be Bearish is that think that prices are going lower and bears want to be short the market. They must sell something with the idea of buying it back later at a lower price.
When you play Commodity Challenge you are a commodity producer, a grain producer and you are long the market and it your job to use the tools of risk management futures and options to manage the risk around that ownership.
Remember to visit us online at CommodityChallenge.com and good luck!
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