Rank: Member
Groups: Registered, Registered Users
Joined: 6/23/2007(UTC)
Posts: 17
Location: Australia
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Could someone explain what the terms 'go long' or 'go short' mean in terms of trading.
Mouse
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Rank: Advanced Member
Groups: Registered, Registered Users, Subscribers, Unverified Users
Joined: 10/28/2004(UTC)
Posts: 3,111
Location: Perth, Western Australia
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Mouse, "Going long" means you are buying a stock from a seller for a particular price, in the hope that you can sell the stock again at a higher price, thus making a profit. "Going short" means you "borrow" a stock from an owner and sell the stock, pocketing the money. But you still have to give the lender back their shares, so you hope that at some time later you can buy back the shares at a lower price, pocketing the difference. Of course, you have to pay some sort of interest to borrow the stock in the first place and there are still brokerage fees so you have to be very careful. Also, not every stock in Australia is able to be shorted. For a list of the shortable stock and to lean more about shorting shares on the ASX, see : http://www.asx.com.au/investor/education/basics/short_sales.htm
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