THE ETERNAL SOVEREIGN

Long Position and Short Position

Long position

  • Long (Buy)
  • Opening a buy position with the expectation that the price will increase.
  • A trader makes a profit when the market price moves up.

Short position

  • Short (Sell / Short Selling)
  • Opening a sell position with the expectation that the price will decrease.
  • A trader makes a profit when the market price moves down.

Quick comparison

Long and short positions apply to the following markets

  • Forex (FX) – currencies
  • Stock market – especially stocks that allow margin trading or short selling
  • Commodities – gold, oil, agricultural products
  • Cryptocurrencies – spot, margin, and derivatives markets
  • Derivatives markets – futures, options, CFDs, swaps

Key note

  • Long positions are available in almost all markets.
  • Short positions are not always available in spot markets and usually require derivatives or margin trading.