What is Long / Short?
Long / Short: Going long is betting the price will rise and going short is betting it will fall; CFDs and forex let you do both.
More terms
- Leverage
- A ratio that lets you open a position larger than your balance, such as 1:30, which controls 30 times the margin set aside, magnifying both...
- Limit order
- An order that fills only at the price you set or better, such as buying once the price drops to a chosen level.
- Liquidity
- How easily an instrument can be bought or sold quickly without moving its price; the more liquid it is, the tighter the spread.
- Lot
- The unit of trade size: a standard forex lot is 100,000 units of the base currency, a mini lot 10,000 and a micro lot 1,000.
- Margin
- The amount a broker sets aside from your balance to open a leveraged position, equal to the position value divided by the leverage.
- Margin call
- A warning from your broker when your margin level falls to a set threshold, asking you to deposit funds or close positions before a stop-out...