MONEY GLOBE XFutures, Leverage & Risk · Lesson 2
Long and short
Making money when prices rise — or fall
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In this lesson
Calculate profit and loss for long and short trades, and understand why shorts carry open-ended risk.
Key takeaways
- Long: buy first, sell later — profit if price rises.
- Short: sell first, buy back later — profit if price falls.
- A long's loss is limited to the price falling to zero; a short's loss is open-ended without a stop.
- Short squeezes happen when many shorts are forced to buy back at once.
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Next lesson: Leverage and margin
Educational information only - not financial advice.
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