Long Position is a trading strategy where you expect the price to go up - understand it clearly.

If you are just starting to trade, there are two main order types you need to understand well: Long Position and Short Position. A long position is a key trading tool that helps you monitor both upward and downward market opportunities. Moreover, by clearly understanding these two orders, you can plan your trades systematically and increase your chances of making a profit.

Long Position: “Buy now” to “Sell later”

A long position involves deciding to open a buy (long) position on an asset (such as stocks, currencies, or other commodities) with the expectation that the price will go up. For example, you see that PEAR stock has a positive outlook, so you buy shares at $350. When the price rises to $400, you sell the shares. The result is a profit of $50 per share. This is using a long position to profit from buying low and selling high.

This strategy is suitable when you anticipate an upward trend in the market. The key point is that a long position is simple—you just buy and wait for the price to increase. However, if the price moves against your expectation and falls, you will incur a loss.

Short Position - The other side of the coin

While a long position bets on rising prices, a short position bets on falling prices. Short selling involves selling an asset before owning it (by borrowing from a broker), expecting the price to decrease, and then buying it back at a lower price.

For example, if you hear that ORANGE company might face problems, you borrow 100 shares from a broker and sell them at $350. Later, if the price drops to $300, you buy back 100 shares at the lower price and return them to the broker. The profit is $50 per share, achieved by selling high and buying back low.

Main differences between Long and Short Positions

Which tools support Long and Short Positions

Long and Short Positions are mostly available on derivative instruments such as:

• CFDs (Contracts for Difference) – very popular because they allow easy long and short orders
• Futures contracts
• TFEX (Thailand Futures Exchange)
• Forex (foreign exchange market)

However, not all instruments permit short selling. You should check with your broker whether the instrument you want to trade allows short selling before executing such orders.

Things to remember before using Long and Short Positions

1. Understand the risks – Both Long and Short carry risks; if your prediction is wrong, you will incur losses.
2. Trading costs – Consider commissions and spreads, which can eat into your profits.
3. Use available funds wisely – Do not invest money needed for daily living.
4. Educate yourself before trading – Always practice with a demo account first.
5. Manage risk – Set Stop Loss orders to limit potential losses.

A clear understanding of long positions is the foundation of effective trading. When you know how to properly utilize both buying and selling powers, you can better spot profit opportunities from market volatility, whether prices are trending upward or downward.