Long & short: what are we really talking about?

Updated March 30, 2026 - The expression long & short often comes up in investment content. However, many savers still mix long position, short position and short selling. In 2026, it is better to start from the basics before looking at the risks.

A long position aims to benefit from an increase in an asset. A short position aims, directly or indirectly, to benefit from a decline. In some cases, this involves short selling.

To complete, see PEA-SME: what taxation for your investments?, Livret P: is it a good investment in the face of inflation? and Tax options for individuals 2026.

A long & short strategy generally combines:

• ▸long positions;
• ▸bearish positions;
• ▸a hedging or arbitrage logic;
• ▸a level of risk which strongly depends on the instruments used.

Hayot Expertise Advice: if you do not clearly understand how the "short" part produces a gain or loss, it is better to consider that the product is too complex at this stage.

• ▸exact nature of the support;
• ▸possible leverage effect;
• ▸risk of loss;
• ▸costs ;
• ▸taxation of the envelope;
• ▸investment horizon.

We can help you restore consistency between support, horizon, risk and tax framework before any asset decision.

Quick link: Take stock of your wealth strategy

The vocabulary long & short may seem technical, but the issue is simple: understand whether you are buying an increase, a decrease or a combination of the two, and at what level of risk. Without this reading, the investment becomes opaque.

Contact: Do you want to clarify the link between allocation, risk and taxation? Our firm can help you establish a more readable decision framework. Make an appointment with Hayot Expertise

(Official sources: AMF)