Wondering what 'long' and 'short' mean in trading?

Wondering what 'long' and 'short' mean in trading? In simple terms, going long means you buy an asset expecting its price to rise; you profit if it goes up and risk losses if it falls. Going short is the opposite: you sell an asset you don’t own (typically borrowed from a broker) because you expect the price to drop; you profit if it goes down, but losses can grow if it climbs. Traders use long positions in bullish markets and short positions to hedge or seek opportunity in bearish moves. Both approaches can use margin and leverage, which amplify potential gains and losses, and require careful risk management. Common tools include stop-loss orders, take-profit targets, and position sizing. For example, a trader might go long on a stock ahead of strong earnings, or short a weak sector ETF during a downturn. Understanding how long and short positions work, their costs (like borrow fees and interest), and their risks helps you build more balanced, adaptable trading strategies.

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