Long vs short
Market Basics
Profit in both directions
Long = buy first, profit if price rises. Short = sell borrowed shares first, buy back cheaper, profit if price falls. Shorts have theoretically unlimited risk, because price has no ceiling.
Check yourself
You short at $50 and it rips to $80. Your P&L per share?
- +$30
- −$30 correct
- $0 until you cover
Short P&L = entry − current. 50 − 80 = −$30, and it can keep getting worse. That's short risk.
Learn this properly
This term has a full interactive lesson in Wick — the chart, the pattern to tap, and a live practice terminal to try it on. Free to start.
Open the lesson