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