• Long and Short positions

    If a trader is optimistic about the upward market movement in the short term he will bet on that and take long position to gain profit out of it and if a trader is pessimistic and expects downward market movement in the short term he will bet on that and take short position to gain profit out of it. The bullish investors always take the long position in the market while the bearish investors always take the short position in the market.

    Futures and Options are the derivatives instruments used to take long and short positions in the share market.

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