Two directions of US stock trading

long and short

Buying a promising stock, shorting is the act of selling without holding a position. When an investor does not hold a position in a certain stock, but expects the stock to fall, he borrows the stock from the brokerage and sells it. When the stock falls, he buys it at a lower price and returns it to the brokerage, thereby earning the difference in the price.

Long stocks are directly traded with the market, and short positions require an additional key step: borrowing securities, although you hardly have any perception of this process. The stocks sold did not appear out of thin air, they were borrowed, and they were borrowed from long positions. Many parties who hold stocks will lend their own stocks to brokers according to their own wishes, and these stocks will form a short-selling pool. After that, the buying operation to close the position is to buy short positions to close the position and then return it to the pool, so this is why there will be no stocks when buying stocks and holding positions when closing positions.

Broadly speaking

Shorting is not limited to the selling operation of a certain financial product. It can be bearish on the price of the product or the entire market. There are a lot of products in the financial market that can be profited from bearish trading, and this kind of operation is short selling.

As for the long and short operations on BiyaPay, there are not so many links, just click directly.