Long vs. Short Forex Trading Positions

 

For all beginning traders, it is essential to comprehend the fundamentals of going long or short in forex. Whether a trader believes a currency will appreciate (go up) or depreciate (go down) in relation to another currency determines whether they take a long or short position. Defined, a trader will “Go Long” the underlying currency when they believe it will increase, and they will “Go Short” the underlying currency when they believe it will decrease.

Learn more about long and short positions in forex trading, as well as when to employ them, by reading on.

WHAT DOES A POSITION IN FOREX TRADING MEAN?

A person or business that owns a certain quantity of a currency and is exposed to that currency’s swings versus other currencies is said to be in a forex position. It may be a short or lengthy posture. Three qualities define a forex position:

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