Buying a financial instrument is the act of taking a [long position] on the instrument, speculating that the price of the instrument will rise. The buying rate of the [instrument] is referred to as the [asking] or offer price.
Traders who have bought a financial instrument are commonly referred to as bulls and they will buy when an instrument displays signs of strengthening in price due to increased demand. Conversely, traders who have sold a financial instrument are referred to as bears and they have the opposite opinions.
Part of a profit [yielding] strategy for a trader is to know when to buy an instrument. Each buyer will naturally have their unique style of trading.
Key takeaways:
- Bulls are traders who buy instruments as they expect the price to rise and might be holding long positions.
- A big part of trading is developing one’s unique style of trading that would lead to profitability.