Long Short ?

[amni]

Hi PPl,
What does long & short means ? (In forex market)



thanks.............

[imgunn]

in general terms...

Long means you buy at a price and hope the price will go up

So you buy at $50 and if it goes up to $60 you made +$10, if it goes down to $40 you lost -$10

Short is the opposite, it means you sell at a price and hope the price will go down

So you sell at $50 and if it goes down to $40 you made +$10, if it goes up to $60 you lost -$10

[narafa]

Originally Posted by amni

Hi PPl,
What does long & short means ? (In forex market)



thanks.............

as answered, it means the same as buying or selling. In forex markets, as currencies are paired against each other, when you buy (or go long a pair), you by default sell (or go short) the other pair.

For example, EUR/USD, when you buy EUR/USD, you are buying Euros, and selling US Dollars. In other words, you are long the Euro and short the US Dollar, so you want to see the pair advance in price so that you can sell back Euro higher and buyback the US Dollars lower.

Thanks,

Nader