From the course: Understanding Capital Markets

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Shorting and going long

Shorting and going long

From the course: Understanding Capital Markets

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Shorting and going long

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- [Instructor] As an investor, you'll often hear reference to shorting a stock versus going long. What does that mean? Let's find out. So I'm here at the E*TRADE site and we've just logged in to a dummy account, but this bar that you see across the top, this black bar appears across the entire site. So if I type in L-Y-F-T, the ticker symbol for Lyft, it'll bring me to a page that looks like this. And then I could either buy or sell by clicking on one of these buttons. So if I click those buttons, it'll take me over here to a page that looks like this. And I've got a few different options here. If I want to go long Lyft, that means that I'm buying shares in Lyft. I have long exposure to the stock. If Lyft rises in value, I will make money. And we'll set up a market order here just for the sake of argument. So my cost of Lyft will now be $6,154.95 for my 100 shares. If Lyft stock rises to $80, my 100…

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