Many novice investors are not very clear about the terms in the gold market. For example, when we usually talk about long positions and short positions, novice investors find it strange: How does investing in gold have anything to do with positions? In fact, this head means position. It is generally called position in English, and some people will translate it into position and so on. This article provides an in-depth look at what it means to be long, and the short equivalent of being long.
Long positions refer to investors who are optimistic about the gold market and expect the price of gold to rise, so they buy gold when the price is low, and then sell it when the gold rises to a certain price to obtain differential income.
The short position is that investors and gold dealers believe that although the current gold price is high, they are pessimistic about the future of the gold market and expect the price of gold to fall, so they sell gold and buy it when the price of gold falls to a certain price to obtain differential income . Short positions refer to investors who think that the price of gold has risen to the highest point and will soon fall, or when the price of gold has started to fall, they think it will continue to fall and sell at high prices. The trading method of selling first and then buying to earn the difference is called short position.
Gold price changes are determined by the balance of power between bulls and bears. Bulls make buying decisions in anticipation of rising prices. Short sellers will sell gold because they predict that the price will fall. Like any other transaction, a deal is reached when bulls and bears agree on price.