What is long liquidation?

This term has origins in Futures markets. It means that the people who hold long future positions are selling their inventory. For example, if you bought 100 shares of Apple Inc (AAPL) , you are considered long in AAPL. When you sell your 100 shares of AAPL, you are long liquidating your position. Long liquidation is considered as old business.

What happens if you liquidate something?

If you liquidate something, you get rid of it. When a huge retailer has to close all of its stores, it liquidates everything, meaning the inventory and even the shelves and display cases are sold to bargain-hunters, to raise money for the company to pay its debts. Liquidate comes from the Latin liquidare, meaning “to melt,” or “to clarify.”

What is long liquidation of AAPL?

When you sell your 100 shares of AAPL, you are long liquidating your position. Long liquidation is considered as old business. If you are initiating a short position by selling something first, this is considered as new business. Q: What does long liquidation mean?

What happens if you liquidate a mutual fund?

Investors have started to liquidate their mutual funds. Someone who liquidates a business closes it and sells what it owns. The company was forced into liquidation. The only way for management to return value to shareholders in the short term is to liquidate the company and return the cash.