Question 1

What is the difference between buying and selling?

Accepted Answer

Buying places an order to acquire an asset, so when it fills you own the position. Selling places an order to give up an asset you hold in exchange for cash, which closes or reduces your position.

Question 2

Does every buy need a seller?

Accepted Answer

Yes. A trade only happens when a buyer and a seller agree on a price for the same asset. Your buy fills against someone else's sell, and the matched execution is called a fill.

Question 3

Is buying the same as going long?

Accepted Answer

Not exactly. Going long means you own an asset and benefit if its price rises, and you usually get there by buying. A buy by itself is just the act of acquiring; the resulting position is what makes you long.

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