Trading Strategies

Long-Short Strategy

Definition

What is Long-Short Strategy?

A strategy holding long positions in favoured assets and short positions in less-favoured assets.

Example in practice

The fund buys strong banks and shorts weak banks.

Keep learning

The tendency of assets with strong recent performance to continue outperforming for a period.

A persistent direction in price or market movement.

A pattern of generally rising prices, often marked by higher highs and higher lows.

The evaluation of economic, industry, company, and financial information to estimate an investment's value.

Think you know your investing terms?

Put your knowledge to the test with a quick quiz.