What is main objective of long and short positions ?


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What is main objective of long and short positions ?

2 Answer(s)


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

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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.