scorecardresearchWhat are the key differences between long and short positions?

What are the key differences between long and short positions?

Updated: 14 Dec 2021, 09:33 AM IST
TL;DR.
A trader determines his strategy of investing in stocks based on his expectation from the stocks to rise or to fall. If he expects the stock to rise, he prefers to go long. Else, he would want to go short. Let us decode what it means
A short position implies that the trader owes shares to another investor without actually buying them.

A short position implies that the trader owes shares to another investor without actually buying them.