NFA Glossary of Terms
Long: a purchased position which is expected to go up in value, i.e. bullish. One makes money on a long position buy selling at a higher price than initially paid for the position.
Short: a borrowed position with an obligation to buy back at a later date. One makes money with a short buy buying back the position at a lower price.
Used for going “long” a position.
- BTO – Buy to Open
- BTC – Buy to Close
Used for going “short” a position.
- STO – Sell to Open
- STC – Sell to Close