Long positions
A long position is opened when a trader expects an asset's price to rise.
The trader generally seeks to buy first and sell later at a higher price.
Short positions
A short position is opened when a trader expects an asset's price to fall.
In leveraged trading, short selling involves significant risk because losses can increase as the market rises.
Important consideration
Both long and short positions carry risk. A correct market direction does not guarantee a profitable trade because spreads, fees, timing, and position size also matter.
Learning reminder
This lesson is for educational purposes. Always understand the risks before using real money in financial markets.