Top Forex Brokers

long shortThere are two more equations to remember:

Long means buy

If you want to buy a currency (meaning that you want to BUY the base currency and SELL the quote currency) at one price and sell it later on at a higher price, then you are in trade's talk taking a "long position" or "going long". 

Short means sell

If you want to sell a currency (meaning that you want to SELL the base currency and BUY the quote currency) in order to buy the base currency back at a lower price as soon as the base currency decreases in value, then you are taking a "short position" or "going short" .

Summary

These are two of the most commons terms used by traders in all forums and at all levels of ability. These two terms express a directional bias on where an instrument, or market, is expected to head over a set timeframe.

  • To be long is to buy, or to take a view that the price will appreciate.
  • To be short is the same as selling short to open a trade and holding a negative bias that the price will decrease.