Long or Short?
- Thread starter zochbaba
- Start date
John Bozeman
Private
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- 26
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.
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.
Pharaoh
Brigadier General
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- 20,308
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.
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.
susannax92
Recruit
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- 1
Yep, Ithink this is the simpliest and the most clear explanation - Thank you
