Cryptocurrency Q&A
What are longs and shorts?
What are longs and shorts?
Maria
Sun Dec 01 2024
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5 answers
1129
I'm trying to understand financial terms and came across 'longs' and 'shorts'. Could someone explain what these terms mean in the context of investing or trading?
5 answers
GangnamGlitter
Tue Dec 03 2024
A long position involves buying an asset, anticipating that its price will increase in the future. This is a common strategy employed by investors who believe in the growth potential of a particular asset.
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Chiara
Tue Dec 03 2024
Conversely, a short position involves selling an asset, anticipating that its price will decrease. This strategy is often used by investors who believe that an asset is overvalued and its price will eventually drop.
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benjamin_doe_philosopher
Tue Dec 03 2024
Both long and short positions can be further complicated by the use of options. There are two types of options: call options and put options.
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InfinityRider
Tue Dec 03 2024
A call option gives the holder the right to buy an asset at a specified price within a certain period. This is typically used by investors who believe that the price of the asset will rise above the specified price.
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Maria
Tue Dec 03 2024
Investors have two primary strategies when trading assets: taking a long position or a short position.
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