Who it's for — Beginners who confuse «buying» with «being long» or think you can only profit when the market rises.
Long and short are the two directions of market exposure — not a complete strategy. Long = bullish exposure; short = bearish exposure. How you open and close depends on spot, futures, or CFD.
In plain terms — Long = you bet price rises. Short = you bet price falls.
Definitions
| Position | Exposure | Profits when… |
|---|---|---|
| Long | Bought / economically owned | Price rises |
| Short | Sold short — must buy back | Price falls |
Open long = usually buy; close = sell. Open short = sell without owning (borrow + sell on spot); close = buy.
Instruments and symmetry
| Market | Long | Short |
|---|---|---|
| Buy stock | Borrow + sell | |
| Futures / CFD | Buy contract | Sell contract |
Shorting has its own risks: theoretically unlimited loss, borrow cost, squeeze. Same stop-loss and size rules as long.
Common mistake — Shorting without a stop «because it must pull back» — a rally can extend far beyond expectation.
Example — Long index CFD: buy opens, sell closes. Short CFD: sell opens, buy closes — symmetric, no stock borrow.
Summary card
- Long: bullish exposure.
- Short: bearish exposure.
- Execution: Buy and sell.