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.
Scalpers and Momentum traders are two of its styles. The first style includes the trading of large amount of shares within seconds for very small capital gain. The latter, which considers trends with that day, is slow compared to the Scalpers style.

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.
Position Trading Contract:
  • 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.
This information provided by Orient Financial Brokers (OFB), licensed and regulated by Central Bank of the UAE, to conduct brokerage in Foreign Exchange, Commodities and Money Markets. OFB offers a number of commodity futures contracts including all main oil, grain and metal contracts.