Even if you are new to online trading, you might have heard of the term ‘long position’ or ‘short position’. In the world of trading, market analysts and vested parties refer to investors who have taken one of the two positions when trading online.
Long position: This refers to an investor who has purchased stocks or assets and rightfully owns it. (1)U.S. Securities and Exchange Commission."Stock Purchases and Sales: Long and Short."
Short position: Investors can short stocks which means that they sell stock they do not own and commit to purchasing the stock at a later date at a price determined by the market. (2)U.S. Securities and Exchange Commission."Investor Bulletin: An Introduction to Short Sales."
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