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Questions tagged [financial concepts]

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Martina Martina Wed Nov 27 2024 | 6 answers 1259

Why is it called long and short position?

I'm curious about the terminology used in trading. Specifically, why are trading positions referred to as 'long' and 'short'? What's the origin or rationale behind these names?

Why is it called long and short position?

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Risk warning: Digital asset trading is an emerging industry with bright prospects, but it also comes with huge risks as it is a new market. The risk is especially high in leveraged trading since leverage magnifies profits and amplifies risks at the same time. Please make sure you have a thorough understanding of the industry, the leveraged trading models, and the rules of trading before opening a position. Additionally, we strongly recommend that you identify your risk tolerance and only accept the risks you are willing to take. All trading involves risks, so you must be cautious when entering the market.

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