Definition
Going long means buying something in the hope its price rises. Going short means selling first in the hope the price falls, then buying back lower.
The story
With stocks, a short seller borrows shares from a broker, sells them, and later buys them back to return them. With futures there's nothing to borrow: you simply sell a contract and buy it back later. A long position can lose at most what it cost; a short stock position has no cap on its loss, because there's no limit to how high a price can climb.
Why markets watch it
"Long" and "short" are how traders and coverage describe which way someone is positioned.
Connects to
We explain why it moves markets. What you do with it is your call. Commentary and education only. Not financial advice. All terms