What Does Going Long Mean In FX?
- To go long in Forex means to buy an asset
- Mostly, it is used as “going long” or “taking a long position”
- Going long in Forex means that you think the base currency will increase
- Going long is the opposite of going short
Going Long In Forex – What Does It Mean?
Long Forex meaning: Long is a term describing position that makes profit when the price of the asset goes up
In Forex trading, going long refers to buying when a trader believes that the price of the base currency is going to increase. Going long is the opposite of going short, which stands for selling the base currency when traders expect the value to fall.
When you go long, you profit when the value of the currency pair increases. On the other hand, when you go short, you profit when the value falls. Short and long in Forex are very frequently used terms describing the positions taken by traders.
To understand the meaning of long in Forex better, let’s discuss specific examples. So, let’s say that you are trading EUR/USD currency pair. In this pair, EUR is the base currency, while the USD is the quoted one.
When you are going long you are essentially buying Euro, which means that you think that the Euro will strengthen against the quote currency. At the same time, since you are trading a currency pair, you are also going short on the US dollar.
Simply put, long position meaning Forex shows that having a long position in Forex means that you are betting on a currency pair price to go up.
What Did We Learn From This Long Position Forex Article?
While trading Forex, you are buying and selling currencies at the same time. This means that you can speculate on upward as well as on downward movements.
In the Forex trading market, the meaning of long position Forex shows that it is a position taken to buy an asset.
You are taking long positions when you believe that the price of a certain currency is more likely to increase in price.
For example, when you are trading EUR/USD and you are going long, it means that you are buying the base currency, Euro.
Detailed Info On Long Forex Meaning
What Does Long Mean In Trading?
To go long meaning Forex refers to buying the base currency. In general, it is a position that makes a profit if the price of the asset increases. In most cases, the term is used in context as “taking a long position”, or simply “going long”. It is the opposite of going short, which means taking a position that makes a profit if the price of the asset falls.
What Does Long EUR/USD Mean?
Opening a long position in the EUR/USD pair means that you are buying the Euro. This is done when traders believe that the price of the Euro is going to increase and the price of the US dollar is going to fall.
Can You Invest In Forex Long Term?
While there is a possibility of long-term Forex trading, compared to other markets, there are not that many long-term Forex traders. Most people around the world prefer to trade Forex, rather than investing in it.