Welcome to Day 6 of the 10 days of trading course from BlackBull Markets. Today we will be discussing ‘shorting’ vs ‘longing’.
One of the major advantages of trading CFDs is that you can make money when the price of assets go down. Compare this to buying stocks or bullion; with these investments, there is only one way for you to make money -> when the price goes up!
With CFD trading, if you believe the price of an asset is going to go down, you can enter a ‘short’ position (otherwise known as selling the asset). Alternatively, if you believe the price of an asset is going to rise, you can enter a ‘long’ position (aka, buying).
Markets can go up and down
If you had entered a 1-lot short position on our Nasdaq-100 CFD on the first trading day of 2022 (worth approximately $___), your position would now be worth more than $____ . Famously, the NASDAQ has lost more than 20% year-to-date.
If you had entered a 100-lot long position on our WTI futures CFD on the first trading day of 2022 (worth approximately $___), your position would now be worth more than $____ . Several factors over the course of this year have caused the price of crude oil to spike from ~$70 per barrel to above $100 per barrel