Most of the time, when we invest in shares, it’s because we expect the price to go up. Whether you buy an ordinary share or a derivative product like a contract for difference (CFD), buying because you expect the price to go up over time is called “going long”. If you expect a share’s price to go down over time, you don’t have that many options if you simply invest in ordinary shares. If you already hold the share, you could sell it to avoid money. If you don’t hold the share, you can avoid buying it. Derivative products like CFDs allow investors to make money from falling share prices. This is called “going short”. In this video, Simon explains the difference between “long” and “short” positions and how they can be used in a CFD portfolio.
Watch this video on taking long and short positions based on the news.
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