what does it mean to long and short a stock?

Question

Can you give an example when to do these stocks

Answer 1

Long means your buying a stock with the expectation that its value is going to rise.

Short means you borrow a stock, then sell it, only to buy it back later to give it back to the bank. You do this with the expectation that the stock value will fall.

So you can make money whether market is up or down. Using both longs and shorts is called hedging, and it's where the name Hedge Fund came from.

You expect a stock price to rise, so you buy the stock. That is going long.

Going short, you expect a stock price to decline, so you borrow for example, 100 shares, from your broker, and they get sold at the current market price. Later, at whatever time the trader chooses, those 100 shares are bought back and returned to the broker. If the price did decline, profits are made. If the stock price rose, it would cost more to buy back those 100 shares, so money lost. This strategy is more risky because of the debt factor, so be very very careful, especially if you don't know what you're doing.

Answer 2

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RE:
what does it mean to long and short a stock?
Can you give an example when to do these stocks

Answer 3

Long Stock Value

Answer 4

"Long" means to buy a stock. Do this when the stock price is low (i.e., you expect it to go higher in the future so you can sell and make a profit).

"Shorting a stock" means you're selling a stock you do not own, for the purpose of buying it back at a later time when the stock price is lower. (So this is done when you think the stock price will go lower in the future.)

I don't recommend shorting for individual investors (too risky). Instead you should buy "puts" if you think the stock will go down.

Answer 5

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Answer 6

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LONG It means you should BUY the shares and hold them for some time so that the price goes up and you will get some profits. SHORT It means you should SELL, the price will go down than current levels , then at those prices you buy and make some profits.

Answer 7

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