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Trading (long/short positions)

The client may open a long or short position based on his/her individual market expectation.

a) Long position

If the client expects that an underlying asset’s price is going to rise, the client might open a buy position (also known as “going long”). By a long position, the client opens a trade that speculates on the rising price of a financial instrument.

Example: Forex trading: If the client thinks that EURO is likely to strengthen against the US dollar, he/she may decide to buy the EUR/USD pair (please always bear in mind that by trading CFDs the client is not buying/selling the actual currency).

b) Short position

If the client expects that an underlying asset’s price is going to fall, the client might open a sell position (also known as “going short”). By a short position, the client opens a trade that speculates on the falling price of a financial instrument.

Example: Forex trading: If the client thinks that EURO is likely to fall against the US dollar, he/she may decide to sell the EUR/USD pair (please always bear in mind that by trading CFDs the client is not buying/selling the actual currency).