Showing posts with label Long Build UP. Show all posts
Showing posts with label Long Build UP. Show all posts

Friday, September 10, 2021

Options trader's perception in positional trading

1. Long position buildup:

Establishing a long position indicates that more investors are expecting price increases and are holding long positions. This can be for a variety of reasons, including stocks that are in an oversold area, some good news about the stocks, or some positive global leads.


2. Short accumulation/buildup:

Short accumulation shows that more investors are expecting interest rates to fall and are making short bets. There are many reasons for this, such as stocks are in an oversold area or stocks have bad news.


3. Long unwinding/closing:

When a long position is closed, people start to sell a long position because some news or goals have been achieved. The reasons for closing a position for a long time may be different, but the result is the same.


4. Short covering:

Traders start buying stocks that they have sold before to close their positions or to exit the position with profit if they achieved what expected.


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