give more examples for long and short positions


1 Answer(s)


Long position as the word suggests you go long i.e; you are well confident about the stock or equity based on your understanding and expect the stock to go up in near future, so you buy them and hold them till the stock reaches your target. You would sell once your target is reached or hold it much longer depending on your interest.

Short position is shorting of the stock, where you believe the stock has no fundamentals or it has had a sudden surge of no reason which would lead to downfall of the share price, thus you short sell it at a higher price and buy it at the lower price thus the difference is your return.