What is the difference between a long position and a short position?

The difference between a long position and a short position is the direction of the market assumption. On one side, you have the choice of going long (buy) when your trading plan provides evidence that the market price of an asset will rise. On the other side, you can go short (sell) when your strategy suggests that it’ll fall.

When should you go long or short?

You’ll go long when you believe that the market price will rise and go short if you think it’ll fall. Typically, the research that instructs your trading plan will determine whether you should go long or short when getting exposure to an underlying asset.

What does it mean to go long?

To go long on any financial market such as stocks or an index means to to buy them. When a spread trader goes long it means the trader expects the price of whatever is bought to go higher and to sell it at a profit. (opposite of going or short selling) that’ll be the shorter on the left then, and the holy one is long ;o)

What is a long and a short stock?

Here’s the long and the short of it! The distinction between going long and going short is brief but important: Being long a stock means that you own it and will profit if the stock rises. Being short a stock means that you have a negative position in the stock and will profit if the stock falls.