What is a long and short position in trading?

Hello, thank you for your question! 

Traders tend to act according to the market’s sentiment and according to their expectations. Therefore, they may “go long” or “go short” with their positions. 

 

A long position means that the trader expects that an underlying value of the asset will gain. For example, he buys the USD/JPY currency pair, therefore he expects the US Dollar to appreciate against the Japanese Yen.

 

A short position means quite contrary to the long position, in this case, traders expect from an asset to lose in value, therefore they sell it. Using the same example, USD/JPY traders sell the greenback in order to buy the Yen.