Going long means buying a currency pair with the expectation that its price will rise. When you go long, you buy the base currency and sell the quote currency. It’s a bet that the value of the base currency will appreciate.
Going short means selling a currency pair with the expectation that its price will fall. When you go short, you sell the base currency and buy the quote currency. It’s a bet that the value of the base currency will depreciate.
Going long and short are fundamental strategies in forex trading. Traders can profit from both rising and falling markets by using these strategies. Understanding when to go long or short is key to successful trading.
For example, if you believe EUR/USD will rise, you would go long by buying the pair. Conversely, if you believe EUR/USD will fall, you would go short by selling the pair. These strategies are fundamental to most trading approaches.
Test your knowledge of going long and going short in forex trading with the following questions:
