Jump to content
  • 0
Sign in to follow this  
Lisa O'Neill

What is a long and short position in trading?

Question

1 answer to this question

Recommended Posts

  • 0

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.

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
Sign in to follow this  

×
×
  • Create New...