The term ‘Short’ refers to a contract made for a short period of time, usually one year. This can be buying or selling of stocks, options, futures or Forex. These contracts (eg: online trading contracts which are short terms contracts) are three types, namely Day Trading, Swing Trading and Position Trading.
Day Trading Contract:
- A very active type of trading
- As the trading is done in the same day, the traders will not have any liability after the market closes.
- The trading is finished in seconds or minutes for very small capital gain per contract or share.
Swing Trading Contract:
- Similar to the day trading,
- The contract may last for up to 4 days.
- It seems to be uncertain as the traders like to take overnight risks by holding the stocks.
- Market trend has a major role
- The time to complete one trade may goes up to days, weeks or months.
- However it has higher risk, these traders have higher gain percentage.