Terms Reference

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

Wealth Risk Management