What does long mean in forex?

Solution
In forex trading, going long on a certain currency pair means buying that pair. For example, if you say you are going long on USDJPY, this means you are buying the USDJPY (or buying the USD against the Japanese Yen). Going long means the same as being in a bullish position. Both mean that you are buying the instrument.

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In the same sense, going short on a certain currency pair or asset means selling that asset. However, this is not a straightforward sale, since you usually do not hold that asset to begin with. To enable you to sell it, your broker offers you a short-selling service, according to which the broker agrees to buy the asset and sell it for you, on the condition you will buy it at a later date. In other words...

Adrian_br

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Long and shorts are very often used trading lingo which means to buy and sell.
By going long you have the expecatation that price will go up and in the other case you short.
 

thetraderaleks

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In forex trading, going long on a certain currency pair means buying that pair. For example, if you say you are going long on USDJPY, this means you are buying the USDJPY (or buying the USD against the Japanese Yen). Going long means the same as being in a bullish position. Both mean that you are buying the instrument.

View attachment 54527

In the same sense, going short on a certain currency pair or asset means selling that asset. However, this is not a straightforward sale, since you usually do not hold that asset to begin with. To enable you to sell it, your broker offers you a short-selling service, according to which the broker agrees to buy the asset and sell it for you, on the condition you will buy it at a later date. In other words, you borrow those assets from the broker. This is the case with stocks. However, in currency pairs, the broker does not need to follow this process because currencies are traded in pairs. For example, when you sell the EURUSD, you are in fact selling the Euro and buying the dollar.

Also, traders often use the term long position to refer to a bullish trade. Traders use the word position since it expresses where they stand when it comes to the specific market in which they are trading. That is, a position represents an opinion or a bias regarding future market direction. Thus, here, entering a long position shows the position of the trader when it comes to the market, which may be a losing or a winning position, depending on many factors.

Thinking in terms of positions, rather than trades, can help traders think more objectively about how to analyze and approach the market, as well as manage risk, and it can improve trading results. When reviewing your earlier positions, it would be wise to think about the justifications you had for opening this position and not the opposite direction. This can help you learn lessons for future trades.
Well explained!
 

sanders777

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In forex trading, going long on a certain currency pair means buying that pair. For example, if you say you are going long on USDJPY, this means you are buying the USDJPY (or buying the USD against the Japanese Yen). Going long means the same as being in a bullish position. Both mean that you are buying the instrument.

View attachment 54527

In the same sense, going short on a certain currency pair or asset means selling that asset. However, this is not a straightforward sale, since you usually do not hold that asset to begin with. To enable you to sell it, your broker offers you a short-selling service, according to which the broker agrees to buy the asset and sell it for you, on the condition you will buy it at a later date. In other words, you borrow those assets from the broker. This is the case with stocks. However, in currency pairs, the broker does not need to follow this process because currencies are traded in pairs. For example, when you sell the EURUSD, you are in fact selling the Euro and buying the dollar.

Also, traders often use the term long position to refer to a bullish trade. Traders use the word position since it expresses where they stand when it comes to the specific market in which they are trading. That is, a position represents an opinion or a bias regarding future market direction. Thus, here, entering a long position shows the position of the trader when it comes to the market, which may be a losing or a winning position, depending on many factors.

Thinking in terms of positions, rather than trades, can help traders think more objectively about how to analyze and approach the market, as well as manage risk, and it can improve trading results. When reviewing your earlier positions, it would be wise to think about the justifications you had for opening this position and not the opposite direction. This can help you learn lessons for future trades.
It looks so easy and so hard at the same time
 

forexinmind

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If a trader expect the price of a currency to go up, he would buy it first so as to sell it for a profit later on. This is called 'going long'. The opposite is a short position, in which a trader expect the price of a currency to go down, and hence 'shorts' i.e sell it first and then buy it later at a cheaper price.
 
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