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.
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.
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