I see that beginner traders are always confused about long and short, so I want to clearly explain how these two orders work and why they are important in trading.

Let's start with a real example. Suppose you see the news and learn that PEAR stocks are performing well this year. You think the stock price will go up. You decide to buy 100 shares at $350 each, paying $35,000. This is opening a long position because you expect the price to rise. When the price increases to $400, you sell and make a $5,000 profit. Buying low—selling high—that's it.

But if you think the opposite, for example, you hear that ORANGE company has problems. You believe the stock will fall. This is when you can use a short position. You borrow shares from a broker and sell them at $350, receiving $35,000. When the price drops to $300, you buy back at the lower price, spending $30,000, and close the position with a $5,000 profit. Same idea—sell high, buy back low—that's short selling.

The fundamental difference is that with a long position, you profit from rising prices, while with a short position, you profit from falling prices. Not all instruments allow short selling; only tools like CFDs, derivatives, or TFEX enable full long and short strategies.

Why is this important? Because if you understand long and short well, you don't have to wait for a bullish market to make profits. You can also profit from a bearish market. Using less capital and leverage, you can still aim for good returns. Just need to understand the risks clearly and manage your positions well.