Long and short position
A long position profits when the price rises; a short position profits when it falls. On a contract on the price, going short is one click with no borrow because you never hold the share, as one short on Nvidia shows, and someone with the opposite view, or a hedging market maker, is always on the other side.
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In the help centreSee the order types available on MochatradeRelated terms
- Market makerA market maker quotes a price to buy and a slightly higher price to sell all day and earns the spread. Since US prices…
- HedgingHedging is taking a second position that loses when your first one wins, to cut risk. Market makers hedge every fill…
- Short sellingShort selling is selling a borrowed share to buy it back cheaper. The loss is open-ended if the price rises, the…
- Bid-ask spreadThe bid-ask spread is the gap between the best price to sell (bid) and the best price to buy (ask). Buy at the ask…
- Market orderA market order buys or sells immediately at the best price available. It always fills, but at the ask if you buy and…
- Margin callA margin call is a broker's demand for more funds when your account falls below the required margin; ignore it and…
Educational content only. Not investment advice. Leveraged products magnify losses as well as gains.