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Long Position vs. Short Position: What's the Difference? ⠀ If | IQ Option official

Long Position vs. Short Position: What's the Difference?

If an investor has long positions, it means that the investor has bought and owns those shares of stocks.

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By contrast, if the investor has short positions, it means that the investor owes those stocks to someone, but does not actually own them yet.

Oftentimes, the short investor borrows the shares from a brokerage firm in a margin account to make the delivery.

If the price doesn't fall and keeps going up, the short seller may be subject to a margin call from his broker.