Updated: May 8, 2026
Key Takeaways
- Going long means buying a stock and profiting if the price rises. Going short means borrowing shares, selling them, and profiting if the price falls. Both are legitimate trading strategies with different risk profiles.
- Long positions have limited downside — a stock can only go to zero. Short positions have theoretically unlimited downside because a stock can keep rising indefinitely against you.
- Short selling requires a margin account and involves borrowing costs. Long positions can be held in a standard brokerage account with no borrowing required.
- Most individual investor