Dear Visitor,

We’re sorry, but our website is currently not available in the Spanish Language.  

We are writing to notify you that as a requirement from the CNMV Spain Authority, we are obliged to inform you:

General Warning: You are about to enter into a Financial Product which may be complex and difficult to understand. As a general rule, the CNMV considers that such products may not be appropriate for all retail clients, due to their complexity. However, Skilling will assess your knowledge and experience and would then deem whether the product is appropriate for you”

Please also visit our website to read our Risk Disclaimer which is currently available here.

Best regards,
Skilling team

Estimado cliente,

Lo sentimos, pero en estos momentos nuestra página web no se encuentra disponible en español. 

Le escribimos para comunicarle que, como requisito de las autoridades de la Comisión Nacional del Mercado de Valores en España, tenemos la obligación de informarle de lo siguiente:

Advertencia general: está a punto de entrar en un Producto Financiero que puede ser complejo y difícil de entender. Como norma general, la CNMV considera que dichos productos pueden no ser apropiados para clientes minoristas, dada su complejidad. Sin embargo, Skilling medirá sus conocimientos y experiencia y estimará si el producto es apropiado para usted.”

Visite nuestra página web y lea la Advertencia de riesgos, actualmente disponible aquí.

Equipo de Skilling

It is required that you understand and accept this disclaimer if you wish to continue using Skilling.com Es necesario que usted entienda y acepte esta advertencia si desea continuar utilizando Skilling.com
Accept Aceptar
Trading Academy Trading Basics - Lesson 3 /16

What's the difference between Long and Short Positions?

What’s the difference between a Long and Short position?

With CFDs and FX trading you can take a view that a market will go up (buying) or go down (selling). When you buy, it is known as ‘going Long’. When you sell, it is called ‘going Short’, as in that you are short of shares. These terms derive from traditional stock market trading and when trading CFD’s, the same terms apply.

  • Buy (entering a long position)

    This is when you buy something at a price with an intention to sell it at a higher price. This is typically how traditional stock market trading works.

  • Sell (entering a Short position)

    This is when you sell something at the market price with the intention to buy it back at a lower price. This means you can make a profit even when markets are going down.

Let’s look at an example

If you think that shares in Apple will go up in price, you would buy shares in the company. This is known as a ‘buy’ or ‘Long position’. If the share price goes up, you can then sell them and make a profit.

On the other hand, if you think the share price will go down, you can ‘sell’ or enter a ‘Short position’ (even you do not own any shares in the company). If the price does go down, then you can close the position at a lower price and make a profit.

This flexibility gives you the power to profit no matter whether the markets are going up or down. It also gives you the ability to manage your risks. To find out more about risk management, read this article.

Keeping track of your Skilling Academy progress. Open account or Log in