What does it mean to have a 'long' or 'short' order in Forex?


If a trader opens a long order the first currency is bought while the second currency is sold. To go long on a currency pair means that you buy it hoping that the market price will rise. A long position is expressed in terms of the base currency.

 

If a trader opens a short order the first currency is sold while the second currency is bought. To go short on a currency pair means that you sell it hoping that the market price will fall. A short position is usually expressed in terms of the base currency.