GOING LONG VS GOING SHORT: TRADING TERMINOLOGY FOR BEGINNERS (AND NO, IT’S NOT ABOUT HEIGHT)

Trader Terms to Cook Your Noodles – Vol. 2

Ah, the chaos of the trading floor.

If this clip’s anything to go by, you’d think “going long” meant you just kept getting taller, and “going short” was what happened when someone is height challenged (like Napoleon)!

But no - in the world of trading, long and short are two core strategies. And understanding them unlocks how you, yes you, can learn to trade both rising and falling markets.

Let’s clear it up.

GOING LONG: THE CLASSIC STARTING POINT

We’ll start with going long, because it’s the one that feels most natural.

To go long means to buy something - because you believe its price will rise. You buy low, wait, and aim to sell high.

“Bought a pair of trainers on sale for £50, flipped them for £80? You went long, mate.”

But in trading, we’re often not buying stuff. We’re buying currency pairs - which sounds like something you'd find in an airport lounge, but really isn’t that scary.

So… what’s a currency pair?

Here’s the deal: currencies are traded in pairs - one going up in value relative to the other.

Think about when you go on holiday. You swap your British Pounds (GBP) for Euros (EUR). If the Euro gets stronger while you’re away, you can exchange it back later and end up with more pounds than you started with.

That’s a currency trade.

In the trading world, that same transaction might show up as GBP/EUR - the first currency is the one you’re buying (base), and the second is the one you’re selling (quote).

If you go long on GBP/EUR, you're betting the pound will strengthen against the euro - just like hoping your holiday money makes a comeback.

So:

• Going long means you're buying that pair, expecting the first currency (GBP in this case) to increase in value compared to the second.

GOING SHORT: THE COUNTERINTUITIVE (BUT GENIUS) STRATEGY

Now let’s talk about shorting - the bit that really cooks beginners’ noodles.

When you go short, you’re not buying something. You’re not owning it. You’re placing a trade that says: “I believe the price of this thing is going to fall.”

In other words, you’re speculating on price direction, not possession.

It’s not about owning a stock or a currency pair. It’s about being strategic: “I think this is going down - and I want to profit if I’m right.”

You’re not betting recklessly. You’re acting on analysis, just like you would with a long trade - only this time, the move is in reverse.

Here’s how it works in practice:

1. You choose an asset (e.g. shares, currency pair, index) you believe is about to fall in value.

2. You place a SELL order first using your trading platform.

3. The platform instantly handles the technical part: it sells on your behalf - even though you haven’t bought or “owned” the asset.

4. You wait.

5. If the price drops, you then place a BUY order to close the trade - ideally at the lower price.

6. The difference between what you sold at and what you bought back at? That’s your profit.

   
   

Example: You short WidgetCo shares at £50 each. The price drops to £40. You “buy back” those shares and close the trade. You didn’t own the shares - but you speculated on the price falling, and you were right. That’s a £10 per share profit.

No physical ownership. No product in your pocket. Just informed market action.

TRADING TERMINOLOGY FOR BEGINNERS: LONG, SHORT — AND YOU

Here’s the important bit: you are the trader.

At CLiK, we don’t teach you to rely on middlemen. We show you how to:

• Read the market

• Spot trends and news that matter

• Decide for yourself when to go long or short

• Use the trading platform with confidence - like the professional you’re becoming

  
  

The "broker" is just your access point. The decisions? The trades? That’s all you.

KEY TAKEAWAYS

• Going long = buying an asset (or pair) you believe will rise in value

• Going short = selling first, aiming to buy back lower and profit from a fall

• Currency pairs = two currencies traded against each other - like GBP/USD - and you're speculating on one rising versus the other

  
  

It’s all strategic. It’s all learnable. And once it clicks, it’s powerful.

CLIK’S TAKE: LEARN TO MOVE IN BOTH DIRECTIONS

Imagine trying to drive a car with no reverse gear.

That’s what trading without shorting feels like - limiting.

At CLiK, we teach you both:

• When to go long with confidence

• When to go short with precision

• And most importantly - why you’re doing either

  
  

Because trading isn't about guessing. It's about process, mindset, and having the tools to act whatever the market’s doing.

NEXT UP: PIPS, GLORIOUS PIPS

They sound like something you find in fruit, but in trading, pips are the tiny price changes that can make or break a trade.

How big are they? Why do they matter? And what’s all this about spreads?

We’ll tackle it next time in: “What’s a Pip? (And No, It’s Not Just a Seed)”

Real Traders. Real Support. Real Results. And now you're fluent in two of the daftest-sounding - but most essential - terms.

Trading terminology for beginners part 2.