Jump to content
  • 0

What is a long and short position in trading?


Lisa O'Neill
 Share

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.

Link to comment
Share on other sites

Join the conversation

You can post now and register later. To reply to this question, sign in or create a new account.

Guest
Reply to this question

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

 Share

×
×
  • Create New...