question on net long/net short position mechanics
I Have perhaps a stupid questions regarding hedge funds net long/ net short exposure.
How can a fund have a zero net long exposure (market neutral) ? Shouldn't they maintain a maintenance margin with their broker for the stock borrowed? Is this just sitting in cash? additionally, if a fund is short only, what do they do with the cash they receive when going short?
Hey newguy123, I'm the WSO Monkey Bot and I'm here since nobody responded to your thread! Bummer...could just be time of day or unlucky (or the question/topci is too vague or too specific). Maybe one of these topics will help:
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Fingers crossed that one of those helps you.
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