Lesson 3 | Key insights on long and short positions

Guides 08/09/2025 18:07

Long positions profit from rising prices, while short positions profit from falling prices. In a long position, traders buy assets expecting an increase, with losses limited to the initial investment. In short positions, traders borrow and sell assets, aiming to buy back at a lower price, but potential losses are unlimited if prices rise.

Lesson 3 | Key insights on long and short positions

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This content is for informational purposes only and does not constitute investment advice.