Basic Knowledge to Invest

บทเรียน 2  Buy and Sell

Before trading financial assets, you need to know the following main topics.

1. Long (Buy)

2. Short (Sell)

3. Bid Price and Ask Price.

 

What is Long (Buy)?

Long (Buy) is opening a contract to buy financial assets based on the anticipation that the asset's price will increase. 

 

 

What is Short (Sell)?

Short (Sell) is opening a contract to sell financial assets based on the anticipation that the asset's price will decrease 



Why Long (Buy) and Short (Sell)?

- When you buy, the profit is that the asset's price goes up. The graph keeps increasing at an infinite number until you want to close the position.

 

- If you sell, the profit occurs when the asset's price decreases. The graph keeps going down and ends at number zero or until you want to close the position.

 

 

What is Bid Price and Ask Price? 

- The bid price is a trader's price to buy an asset at a specific price.

 

- The ask price is the price a trader offers to sell an asset at a specific price.

 

 

Investors consider buy and sell based on experience gained from analyzing charts to anticipate whether the asset they intend to invest in will likely rise or fall in the future. Therefore, buy and sell are crucial to the bid price and ask price, enabling investors to open buy-sell contracts at the desired price point effectively.