Buy and sell

Opening and closing a position: buy to enter long or cover a short; sell to enter short or close a long.

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Who this is for — First entry in the concepts path: what happens when you press buy or sell, regardless of strategy.

In trading, buy and sell are the two elementary directions for interacting with the market via an order.

Term Operational meaning
Buy Purchase the issue or contract — usually to open a long or close a short
Sell Sell — to open a short or close a long

On most platforms, Buy and Sell buttons send orders to the matching-engine or market-maker. Exact meaning depends on context: spot-market, futures, cfd.


Buy and sell are not yet a strategy

Executing a buy does not mean «the market will rise». It only means taking bullish exposure (or reducing bearish exposure). When to buy or sell is covered by different methodologies — discipline-cyclic-analysis, volumetric-analysis, quantitative-trading, price action, etc.