Stock Indices Trading Long and Short and Stock Index Charts
In stock index trading, there are two types of stock indices trades, these are:
- Long (buy) - long is if the stock indices trend is buy/bullish.
- Short (sell) - short is if the stock indices trend is sell/bearish.
Buying/Long and Selling/short in Stock Indices
Both terms in Stock Indices, refer to things we do when open a stock index trade.
Buying Long - stock indices term to use when buying and when opening a stock index trade.
Selling short - stock indices term to use when selling and when opening a stock index trade.
Long - Long is another term used to refer to buying in stock indices, If a trader goes long it means that he buys the stock indices instrument that is heading in an upward trend direction. When the stock index price is moving in an upward stock indices trend the trend is referred to as bullish stock index trend.
Short - Short is a term used to refer to selling of a stock indices instrument that is going in a downward trend direction. When the stock index price is going downwards then it is referred to as a bearish stock index trend.
Basically the term, "selling short" can be refer to selling in the stock indices markets. Selling short is used to transact a stock indices instrument that is predicted to depreciate in value compared to another, when this stock indices instrument is sold then it is the same as not holding value in this stock index and holding the same value in another form against which this stock indices instrument is traded against - mostly US Dollars.
Buy/Long
If the stock index price is going up we buy, this is referred to as going long - Therefore long is just another name for buy. When the stock indices market stock indices trend is going up it is referred to as bullish, this is when a buy stock indices trade is placed. A bullish stock indices trend is identified by drawing an upward stock indices trendline on a stock indices chart. The example illustrated below shows a long/buy stock index trade signal.
Buy/Long
Sell/Short
If the stock index price pair is going down we sell, this is referred to as going short. When the stock indices market stock indices trend is going down it is referred to as a bearish. The example illustrated below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward stock indices trendline on a stock indices chart. The example illustrated below shows a short/sell stock index trade signal.
Sell/Short - Stock Indices Buy Trade and Stock Indices Sell Trade
Stock Indices Charts
A stock index chart provides a visual representation of stock index prices (drawn on the y-axis) against time (drawn on the x-axis) for stock indices. The movement of stock index prices is drawn on these stock indices charts. The stock indices chart can be drawn as candlestick charts like the one shown below or as line charts or bar charts.
Stock Index Chart - Candlesticks Charts
The three common types of stock indices charts used in stock index trading are:
- Candles Charts
- Line Charts
- Bar Charts
These 3 are explained in the topic Stock Index Chart Types.
Indices Platform
This is the stock indices software that is provided by a broker to help stock indices traders place their stock indices transactions. Once you download and installs this stock indices software on your computer you can then begin to trade in the Stock Indices market. All stock indices trades are executed through this stock indices platform. If you want to learn a stock indices platform, MT4 Indices Platform is a good stock indices platform to start with.
To set these stock indices orders, open MT4 Indices Platform, open a 'chart', right click on the "chart', select 'New Order', then select the stock indices order either sell or buy as shown below. (Keyboard Short Cut Keys - Press F9 Key)
Setting Buy Long Stock Index Order and Sell Short Stock Index Order in MT4
