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Trading Directions Trading Directions

There are two primary directions for trading: going long (betting something goes up) and going short (betting something goes down.) But it’s more complex than that when you consider various types of assets can be both bought and sold. For example, you can buy-to-open a long Call trade, or you can sell-to-open a Put, and in both cases profit when the stock price moves to the up side.

  • Trading Directions

    Introduction to Directional Trading 

    Directional trading is an approach used by traders to speculate on the future price movements of an underlying asset. In this article, we will explain what directional trading is, the different types of directional trading strategies, and the factors that traders consider when making directional trades. Whether you are a beginner or an experienced trader, …
    Introduction to Directional Trading
  • Trading Directions

    Going Long in Trading Explained 

    When trading in the financial markets, investors often take a long view. Taking a long view means placing a bet that the security will increase in value over time. Traders can take a long position by buying equities, options, futures, and other derivatives. These investments are used to create strategies such as LEAPs (Long Term …
    Going Long in Trading Explained
  • Trading Directions

    Going Short in Trading Explained 

    Short positions in trading are a way for investors to make a profit when the market is falling. The process involves borrowing a security from a broker or another investor and selling it, with the hope of being able to buy it back at a lower price in the future and make a profit. While …
    Going Short in Trading Explained
  • Trading Directions

    Neutral Trades Explained 

    Neutral trading strategies in the options market offer traders the ability to generate profits with minimal impact from directional movements of the underlying assets. When investors anticipate low volatility or a stable market, they often engage in neutral trades, exploiting the opportunities presented by time decay, implied volatility fluctuations, and other intrinsic and extrinsic value …
    Neutral Trades Explained