busterbluth

the show NY Wrote:
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> If you are long a bond, that means you have lent
> it out and want the rates to go up. So think in
> terms of interest rates, not bond prices.
>
> There was actually as similar very tricky Q like
> this on last year's exam. They told you you had a
> long gold position and asked what you would do if
> you wanted to hedge the position, and then what
> your payoff would be. Key was to understand that
> if you are long an asset you go short to hedge.


Huh? Not sure I understand what you mean. If your long the bond you want interest rates to go up???