Forex Brasil: Long Vs Short Position

Long Vs Short Positions

If you are new to the Forex market, you have probably heard in articles or forums that a particular trader is long or short on a particular currency pair. 
If you do not know what these terms mean, this article will help clarify this doubt.

Long position

Long Position - Example: Euro Buying and Dollar Selling

When a currency pair is in Long it means that the first coin is bought while the second is sold.
Being in a long position in a currency means buying, waiting for the price to rise. A long position is expressed in terms of the base currency.

Short Position

Short Position - Example: Euro Sale and Purchase of Pound Sterling (GBP)

A Short Position occurs when the first currency is sold while the second currency is bought.
Being in Short Position on a currency means you sell it in the hope of a decline in market price. A short position is usually expressed in terms of the base currency.

Remember that all currency trading positions require the trader to be short in one currency and long in the other.

Note: In manually submitted Forex Signal groups these terms are often used so if you plan to use these services remember them very well.

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