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.

Related Definitions

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    1. A recommendation to purchase a specific security. 2. To acquire an asset in exchange for currency.
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  • Long (or Long Position)

    1. The buying of a security such as a stock, commodity or currency, with the expectation that the asset will rise in value.2. In the context of options, the buying of an options ...
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    • Security

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    • Sell

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    • Short (or Short Position)

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