Long in forex means

Long in forex means

29/01/ · Key Takeaways In forex trading, to go long means to buy with the expectation that your purchase will rise in value. When you are long on a currency, it means you are betting the base currency will strengthen against the quote currency. Some of the Estimated Reading Time: 5 mins 13/02/ · Having a long or short position in forex means betting on a currency pair to either go up or go down in value. Going long or short is the most elemental aspect of engaging with the blogger.com: David Bradfield The Meaning of the Expression “Go Long” in Forex Trading. There are some terminologies used in the foreign exchange market. “Go long” means that you can place a buy option with the expectation that the value of your asset is going to blogger.comted Reading Time: 3 mins

What New Traders Need to Understand About Going Long

He is a member of the Investopedia Financial Review Board and the co-author of Investing to Win. Gordon is a Chartered Market Technician CMT. He is also a member of CMT Association. In foreign exchange trading forexas in all market trading, to go long means to buy with the expectation that your purchase will rise in value.

It's the opposite of going short, which is when you expect the value to fall. In forex, the purchase you are making is a currency, and when you go long, you profit when the value rises; when you go short, you profit when the value falls. To trade foreign currency, you buy or sell a currency pair. All currency pairs have a base currency and a quote currency. Here, the USD, or U. dollar, is the base currency and the JPY, or Japanese yenis the quote currency.

Because every currency trade involves a pair, you will always long in forex means go long on one currency and short on the other when making a trade. When you are long on a currency, it means you are betting the base currency will strengthen against the quote currency. In the long in forex means above, you'd be betting the dollar would be equal to more than yen in the future.

So in a long trade on this currency pair, you are buying, or going long on, the dollar long in forex means you'll simultaneously go short on the yen. In effect, you are selling the yen, just like when you short a stock by selling shares. To borrow an example from the stock market: When you buy the stock of a company such as Apple NASDAQ : AAPLyou are going long in Apple stock and short the dollar because you feel the value of a dollar will not grow as fast as the value of Apple stock.

Because you're both buying and selling currency when you make a forex trade, you can speculate on both the upward and downward movements. To go long on a certain currency, you open a trade in a buy position, because you believe the base currency is bullish —likely to rise in value. At the same time, it also means long in forex means are bearish on the value of the quote currency, and think it will fall.

If you're correct and the value of the base currency rises, you can close out your trade then at the current market price and take a profit.

You can measure the changes in value in pips: a pip is 0. Some of the reasons that traders go long come from technical as well as fundamental developments. With fundamental analysis, you'll be looking at economic news related to the currencies in question. For example, long in forex means, if news releases start to overshoot or surprise economists' expectations, this shows that the economy is doing better than many people expected and there's room for upside on that currency.

Therefore, it may be worth buying the currency, or going long. Another reason forex traders may decide to go long a currency pair is when a central bank announces its plans for monetary tightening, which historically tends to lift its currency's value. Technical reasons for going long often include currency prices breaking through a certain price-level resistance or a price ceiling.

This would show surprising strength in the currency's price mobility and that a new market imbalance may be developing that could turn into a strong trend. Traders also long in forex means to go long when the currency price comes down to a well-defined support level or a price floor. Trend-following traders who watch trend acceleration often go long on a trade position and hope to stay in that trade until the trend expires.

Trading Forex Trading, long in forex means. By John Russell Full Bio LinkedIn John Russell is an expert in domestic and foreign markets and forex trading. He has a background in management consulting, database administration, and website long in forex means. Today, long in forex means, he is the owner and lead developer of development agency JSWeb Solutions, long in forex means, which provides custom web design and web hosting for small businesses and professionals.

Learn about our editorial policies. Reviewed by Gordon Scott. Article Reviewed January 29, long in forex means, Learn about our Financial Review Board. Key Takeaways In forex trading, to go long means to buy with the expectation that your purchase will rise in value.

Some of the reasons traders go long in forex include in response to economic news and because currency prices are breaking through a price ceiling.

Forex Trading for Beginners

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Definition of "Long" in Forex Trading

The Meaning of the Expression “Go Long” in Forex Trading. There are some terminologies used in the foreign exchange market. “Go long” means that you can place a buy option with the expectation that the value of your asset is going to blogger.comted Reading Time: 3 mins 29/01/ · Key Takeaways In forex trading, to go long means to buy with the expectation that your purchase will rise in value. When you are long on a currency, it means you are betting the base currency will strengthen against the quote currency. Some of the Estimated Reading Time: 5 mins 13/02/ · Having a long or short position in forex means betting on a currency pair to either go up or go down in value. Going long or short is the most elemental aspect of engaging with the blogger.com: David Bradfield