Positions: Long and Short

Trading Basics

Usually you can only buy or sell your position to make a profit. In addition, there are two options to go long or short. Both of these possibilities can be used with additional leverage to increase your profits.

Long position

Long Position is created when you buy ("Enters Long") a security with the expectation that it will rise in value to sell ("Exit Long") it later.

Short position

Short Position is created when you sell ("Enter Short") a security first with the intention of repurchasing it at a lower price later on, i.e. to buy it back ("Exit Short"). Thus it is also possible to make a profit not only with rising but also with falling exchange rates.