Long Position vs. Short Position: Differences, Pros & Cons

Trading in financial markets involves buying and selling assets for profit, and its key element is opening short or long positions, which are widely used in stock, commodity, cryptocurrency, and currency markets.Opening a long position means purchasing an asset with the anticipation of its future growth. In contrast, opening a short position involves selling a borrowed asset with the intention of buying it back later at a lower price. These two opposing strategies enable traders and investors to