JoymistaWhat Do Long and Short Mean in Trading?
Long means a buy trade that profits if price rises; short means a sell trade that profits if price falls.
Explained
In forex and contracts you can sell first easily because you trade the price difference. In stocks, short selling means borrowing the shares from your broker. Either way, a short’s loss grows as price rises.
Example
Example with made-up numbersYou go short at 50 and buy back at 45, a gain of 5 per unit before costs. Had price risen to 55, the loss would be 5 per unit.
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Open in JoymistaEducational content, not investment advice.