I'm trying to understand the difference between shorts and longs trading in the financial market. Could someone explain the basics and how they work?
5 answers
Thunderbolt
Fri Nov 29 2024
Investors hold onto “long” security positions with the anticipation of future appreciation in stock value.
Leonardo
Fri Nov 29 2024
By selling short, investors aim to profit from the decrease in the stock's value by buying it back at a lower price later.
Giulia
Fri Nov 29 2024
A “long” position refers to the buying and holding of a stock with the expectation of profit from an increase in its price.
Federica
Fri Nov 29 2024
In contrast to a “long” position, a “short” position entails selling a stock that one does not currently possess.
noah_doe_writer
Fri Nov 29 2024
Selling short is a strategy employed by investors who predict a decline in the stock's price.