Lecture 6 (Module 1). Buying vs Short Selling

Going long - buying an asset outright is the default, intuitive way most people think about trading and investing: you buy at one price, hope it rises, and sell later at a higher price. The profit is the difference between your entry and exit price, and the risk profile is straightforward:

• Maximum loss: capped at 100% of what you invested: the worst case is the price falling all the way to zero.