Buying & Selling Flashcards
1
Q
what are the two ways you can make money when trading?
A
by going short or long
2
Q
if you expect the price will rise…
A
go long
close the trade above buy price to make profit
3
Q
what does going long mean?
A
buying an asset and waiting for its price to rise, to then sell it and make profit
4
Q
if you expect the price will fall…
A
go short
close the trade below sell price to profit
5
Q
what does going short mean?
A
borrowing an asset from a broker
selling it
buying it back at its new price
returning it to the broker at the buying price and pocketing the difference
