In plain terms — Long = you bet price rises. Short = you bet price falls. Two directions of exposure, not yet a strategy.
| Position | Exposure | Profits when… |
|---|---|---|
| Long | Bought — owned (or economically long) | Price rises |
| Short | Sold short — must buy back | Price falls |
Opening a long usually means buy; closing it with sell. Opening a short means sell without owning (borrow + sell); closing with buy.
Markets and instruments
On spot markets, shorting requires stock borrow. On futures and CFDs, long and short are symmetric for the trader. Indices are often traded via derivative.
Shorting has its own risks (theoretically unlimited loss, borrow cost, squeeze) and needs the same risk rules as going long.