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Trading Terms

Short Position

On the other hand, a long position is when an investor buys an asset with the expectation of selling it at a higher price in the future. Short selling can be a high-risk strategy as it involves borrowing an asset and selling it, with the hope of buying it back at a lower price later.

As we delve into the world of finance, it is crucial to understand the concept of short and long positions. A short position is essentially a bet that an asset's value will decrease, allowing the seller to make a profit. Conversely, a long position involves purchasing an asset with the anticipation of selling it at a higher price later on. However, it is important to note that short selling comes with its own set of risks, as it involves borrowing and selling an asset with the hope of buying it back at a lower price in the future.

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