Long and Short trading

In the case of CFDs, you open so called contracts for difference, where you can open your position in any direction (sell, buy), only with a duty to close this position in future with a duty of financial settlement. If your prediction of price development of chosen asset is right, you realize a profit of your trading position. If the prediction is wrong, Your position can be loss. You might find interesting the information or fact, that the majority of Your trading position find themselves in a temporary loss due to unpredictable price fluctuation, but also the same majority of Your trading positions reaches the profit. Especially when You open your positions in line with current trends, (visible especially on Daily and 60 minutes charts).

It is your free will, with a knowledge of markets, principles of this trading, current situation in Your trading, risk acceptance and principles of Money management, when and how will you set your trading Stop, Limit orders, or when and how will you close the trade. Learn to close all your trading positions always in profit!

The basic concept of fair making money is buying low and sell high, which is easy to understang in everyday life and we are used to that. It is simply the ordinary goal of trading. The idea contains a goal, and even though you can not always reach the goal, trader should always have a reason for his efforts. When trading with Futures, the goal is to profit from price movements. We repeat: from price movements. Not always possible to reach, but always a goal. Online trading of CFDs and Forex financial instrument enables active speculations on the rise or decline of asset price. It is the only business in the world, where you can sell your asset first and buy it later without having to owe it.

Long trading

In the lingo commonly used in trading with futures commodities, there are some expressions that became natural in sime time, such as Long. If trader buys a contract, it is said that he goes long and he opened a long position. Going long in financial contract means, that the trader thinks, that the price will rise and is willing to bet on it by buying the contract. Long position is also called a Bullish position. This is the same approach as within the Share market, where an investor is bullish on some company"s shares, because he thinks, hopes, prayes, for a rise of this price.

We buy, if we suppose that the price will rise. Rising prices on charts are a great opportunity for profitable speculation. The uptrend is called bulltrend, uptrend, longsituation. Buying the contract is bullish. Both means going long, to be long, to have a long position. Long is bullish, bullish is buying, buying is hoping that the price will rise. All uses of the word long reflects an interest for a rise of the price. When and if the price rises, then the trader"s plan is to sell the long position at the highest price and therefore make a profit. The constant trading goal is simple: buy low, sell high.

Short trading

The opposite of going long is going short. If the trader is short, then he thinks, that the contract price will decline. Short position is owning the contracts, which were sold within the assumption of lower prices in near future. Trader hopes, that he will buy the contracts later (destroy) on lower prices and thus earn. Trader is short, if he sells the contract first.

If we sell, we assume that the asset price will decline. Declining prices on charts are a great opportunity. Downtrend is called beartrend, downtrend, downsituation. If traders think that the prices are heading to south, they are bearish and go short or open a short position. That means to sell all contract first. And if someone askes them, what is their position with certain asset, they can respond that they are short on market. Short is the equivalent of a bearish. The same principle works here: Buy low, sell high, only in reverse order.