What is main objective of long and short positions ?


2 Answer(s)


Long term : Buy Low price and Sell High price
Short term : Sell High price and Buy Low price

Long

When a trader is in a long trade, they have entered a trade by buying a contract (or group of shares ), and are hoping that the price will go up.

Short

When a trader is in a short trade, they have entered a trade by selling a contract (or group of shares ), and are hoping that the price will go down.