What is long short trading?

At FMarkets we allow traders earn money by short trading. That means you can make money even when the market drop. The long and short words apply to whether a transaction was started first by buying or selling. A long trade is initiated by buying to sell at a higher price in the future and realizing a profit. In contrast, to repurchase the stock at a lower price and realize a profit initiates a short trade.

Long Trades

If trader want to buy a specific commodity, traders often say they are “going long” or “go long”. If you go long at $10 on 1,000 A stock shares, the trade costs you $10,000. You will earn $11,000 and net a $1,000 profit if you are willing to sell the stock at $11.

Short Trades

If you are going short on 1,000 shares of A stock at $10.00, similar to the example of going long, FMarkets allow you to borrow $10,000 to buy 1,000 shares. When the price of that share drop to $9, you buy 1000 shares to pay back to us with the cost is $9,000, and you earn $1,000 profit.

Trade Global Markets with FMarkets

With more than 10 years of experience in the financial industry, FMarkets create a diversified, secure, and fast transaction environment for traders worldwide. Join us to access future and CFDs trading over 400 different products in 8 of the world’s most attractive financial markets.