What Are Long and Short Positions in Trading?

Long and short in trading describe two different ways of taking a market position based on the expected direction of price movement.

Position Type	Explanation	Example
Long	A “long position” involves buying an asset with the expectation that its price will rise.	Suppose the asset is bought at ₹500 and later sold at ₹550/The price movement generates a ₹50 potential gain, before applicable costs.
Short Selling in the Stock Market	A “short position” involves selling with the expectation of buying back at a lower price.	Suppose a security is sold at ₹500 and later repurchased at ₹450.The price difference of ₹50 represents the potential profit, before applicable costs.

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What is Long and Short in Trading?

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