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Long or Short?

Discussion in 'Beginners Bootcamp' started by zochbaba, Mar 24, 2011.

  1. zochbaba

    zochbaba Recruit

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    please what does it mean to go long or short
     
  2. John Bozeman

    John Bozeman Private

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    In a very simple nutshell,

    You go "long" if you think the price is going to go up.
    You go "short" if you think the price is going to go down.

    Others may want to give you a very detailed answer, but that is the basic summary.
     
  3. Pharaoh

    Pharaoh Colonel

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    Good summary!

    One slight complication with forex, since it's traded in pairs.

    If I'm going long (buying since I think it will go up) on the EURUSD, that means I'm simultaneously long on the Euro and short on the dollar.

    If I'm bullish on the dollar (think it will go up) and want to be long on the dollar against the Euro, I'd need to short the EURUSD (sell the pair) since I think the Euro will fall against the dollar.
     
  4. f-man

    f-man 4Xangels Representative

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    And the simplest of versions:

    long=buy
    short=sell
     
  5. susannax92

    susannax92 Recruit

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    Yep, Ithink this is the simpliest and the most clear explanation - Thank you
     

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