WickCheck / Trading school / Long and short
Long and shortBeginner
Long means buying to profit from a rise; short means selling to profit from a fall.
What it means
In forex and CFDs you can go short as easily as long. A short position makes money when price drops and loses when it rises, with the stop placed above entry.
How to spot it
- Long: entry below target, stop below entry. Short: the mirror image.
Common mistakes
- Only ever trading one direction because shorting feels unnatural.
Related terms
Stop lossThe price where a losing trade is closed to cap the loss at a planned amount.…Risk to rewardHow far the target is compared with the stop. A 1:2 trade risks 1 to make 2.…Market structureThe pattern of swing highs and swing lows that shows whether price is trending u…
Why most strategies need a human behind the screen
Read the lessonWhat a mechanical test can and cannot tell you about smart money concepts.
Education only, not financial advice. Definitions vary between teachers; these are ours, written for clarity.