In trading, the terms "long" and "short" refer to the directional bets made by investors on whether a security will go up or down. Here are the key differences between long and short positions:

Long Position

• An investor who has a long position has bought and owns shares of a stock or other asset.
• The investor hopes that the price of the asset will rise so that they can sell it later for a profit.
• The potential downside of a long position is limited to the purchase price, while the potential upside is unlimited.

Short Position

• An investor who has a short position has sold a stock or other asset that they do not own, with the expectation that the price will fall.
• The investor hopes to buy back the asset at a lower price and make a profit on the difference.
• The potential downside of a short position is unlimited, while the potential upside is limited to the price at which the asset was sold.

In summary, a long position means owning an asset with the expectation that its price will rise, while a short position means selling an asset with the expectation that its price will fall.