Long Position Vs. Short Position: Strategies For Success

Here is a comprehensive head of the position and short position strategies:

What are positions and short positions?

In the trade, positions and short responsibilities mean the opposite side of the order or trade.
Position

is a long -term investment to buy and maintain potential in the future, while
short position means selling securities that you do not belong to hoping to buy it at a lower price later.

Main differences:

• Purchase before sales : When you buy shares, you basically take debt to buy it.

2.

• Risk and Reward : Positions usually pose a lower risk than short positions, which include sales of securities, intending to buy them at a lower price.

Positions and short position strategies:

1

2.

• After after a more pole offer : Positions give you a higher profit, if your primary asset values ​​value.

Short position strategies:

1

2.

Popular positions and short position strategies:

1

2.

Positions and short position aspects:

* Margin Requirements : Positions may require higher capital requirements compared to short positions.

* Tax effects : positions can lead to tax commitments if they are not properly managed and short positions usually do not.

* Liquidity : Positions often include securities for a long time, which may limit liquidity.

Conclusion:

In order to make reasonable decisions on investment decisions, it is necessary to understand the differences between position and short position strategies. Although positions are suitable for long -term investments with low risks, short positions offer greater potential, but also higher risk. Always consider your personal risk tolerance, investment goals and market conditions before choosing a strategy.

If you decide to use, whether to use a position or a short position, ask yourself:

• What is the purpose of my investment?

• What type of risk do I want to take?

• How can I manage potential losses?

Carefully evaluate these factors and, taking into account your individual circumstances, you can make reasonable decisions on the use of your trade strategy compared to short positions.

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