Directional Trading

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Dictionary Says

Definition of 'Directional Trading'

A general term referring to the strategy used by investors that open positions, either long or short, on the belief that they are able to correctly predict the movement of price in a security.
Investopedia Says

Investopedia explains 'Directional Trading'

Simple investing. If you think a security is going up, you buy, if you think the security is going down, you sell. This is directional trading, no complicated strategies.

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Related Definitions

  1. Buy

    1. A ...
  2. Long (or Long Position)

    1. The buying of ...
  3. Option

    A financial ...
  4. Security

    A financial ...
  5. Sell

    The process of ...
  6. Short (or Short Position)

    1. The sale of a ...
  7. Stock

    A type of ...
  8. Trading Floor

    The floor where ...
  9. Trading Account

    1. An account ...
  10. Trading Curb

    A temporary ...

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