Why positions in trading called long when buying and short when selling?

Answer 1

Long is a term used to the strategy where the person buys a stock and holds it for a long period of time. He is not a trader. He just buys the stocks and holds them for a long time before he sells it.

Short is a term used to the strategy where you sell stocks that you do not own. When an expert traders spots that the price of a stock is tumbling, he would borrow stocks of that company and sell them now at a price and then buy them back after say an hour of trading at a lower price and replenish them to the one who lent the shares. This way, he makes a profit out of the fall in prices of a stock.

Answer 2

The terms "long" and "short" in trading refer to the direction of a trade. A "long" position means buying an asset with the expectation that its value will increase. On the other hand, a "short" position involves selling an asset that is borrowed, with the hope that its price will decline, allowing the trader to buy it back at a lower price and profit from the difference. These terms originated from the old practice where investors would physically hold or "go long" on an asset they bought, and "short" sell assets they did not yet possess.