CMX Markets
Cmxmarkets Representative
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What does Long Position & Short Position mean?
The present article aims to reveal the meaning and how long and short positions work. As all of us have heard at least once, the adage "buy low, sell high", is relevant to the financial markets. Indeed, buying low and selling high is generally a good financial investment strategy to maximize returns. In order to achieve this goal, traders conduct different types of trades. Taking an example with forex trading, if a trader considers a currency will appreciate (go up), he/she will “Go Long”(Buy) the underlying currency, meanwhile, if a trader expects the currency to depreciate (go down), he/she will “Go Short” (Sell) the underlying currency. In corporate jargon, such concepts are called long or short positions, which are used to maximize traders' profits, from both the rise and fall of exchange rates.
Read here:
https://telegra.ph/Long-Position-vs-Short-Position-01-05
The present article aims to reveal the meaning and how long and short positions work. As all of us have heard at least once, the adage "buy low, sell high", is relevant to the financial markets. Indeed, buying low and selling high is generally a good financial investment strategy to maximize returns. In order to achieve this goal, traders conduct different types of trades. Taking an example with forex trading, if a trader considers a currency will appreciate (go up), he/she will “Go Long”(Buy) the underlying currency, meanwhile, if a trader expects the currency to depreciate (go down), he/she will “Go Short” (Sell) the underlying currency. In corporate jargon, such concepts are called long or short positions, which are used to maximize traders' profits, from both the rise and fall of exchange rates.
Read here:
https://telegra.ph/Long-Position-vs-Short-Position-01-05