What does it mean to go long or short in forex?

Going long means you’re speculating that the base currency will strengthen against the quote currency. And going short means you’re speculating that the base currency will weaken against the quote currency. How long can I hold a long or short position in forex?

What is a long position in forex?

Having a long position in forex implies that the person is the owner of the security. Long positions make investors maintain their high expectations that there would be a rise in the value of stock in the coming days. What is a short position? Occupying a short position implies that the person sells a stock that belongs to another person.

What is the difference between a long and a short trading position?

By Stjepan Kalinic , Updated on: Apr 07 2023. Going long means opening a trading position where you expect the price of an asset to increase in order to profit. Going short means opening a trading position where you expect the price of an asset to decrease in order to profit. The forex market is a specific phenomenon.

What is short selling forex?

Short selling is used by traders to hedge currency exposure or simply to profit from forecasted analysis. This article explores the basics of short selling forex, using the EUR/USD currency pair as an example to explain the steps involved. It also advises on suitable risk management throughout the trade journey.