Long is a margin bull position. In trading, long points a position that makes a profit if an asset\u2019s market price increases. Usually used in context as \u2018taking a long position’.<\/span><\/p>\n Taking this position doesn\u2019t necessarily mean buying an asset. Derivatives like spread bets, CFDs and futures contracts all provide the facility for traders to take this position on a market without actually buying the underlying asset.<\/span><\/p>\n It is the opposite of going short or shorting, which means taking a position that makes a profit if an asset\u2019s market price falls.<\/span><\/p>\n When you are trading foreign currency, you are simply placing a buy order on a currency pair. In forex trading, all currency pairs have a base currency and a quote currency. The quote usually looks something like this: USD\/JPY = 100.00. The USD is the base currency and the JPY is the quote currency.<\/span><\/p>\n When a currency pair is long, the first currency is buying while the second currency is selling short.\u00a0Taking this position on a currency means that you buy it, hoping that the price will rise. It is expressed in terms of the base currency.<\/span><\/p>\n Remember that every FX trading position requires a trader to go long in one position while simultaneously going short in another.<\/span><\/p>\n If a trader is in a trade on the basis that the market is going to force the price of a currency pair upward this is known as the same position.<\/span><\/p>\n The position you take is “buy” position.<\/span><\/p>\n Some of the reasons that traders go long come from technical and fundamental developments. From a fundamental perspective, economic news releases can start to overshoot or surprise economists’ expectations.<\/span><\/p>\n This shows that the economy is doing better, and therefore, it may be worth buying the currency or going long.<\/span><\/p>\n Another fundamental reason is when a central bank announces its plans for monetary tightening. Which historically tends to lift its currency’s value.<\/span><\/p>\n Traders also tend to go in this position when the currency price comes down to a well-defined support level or a price floor.<\/span><\/p>\n","protected":false},"excerpt":{"rendered":" DEFINITION of Long Long is a margin bull position. In trading, long points a position that makes a profit if an asset\u2019s market price increases. Usually used in context as \u2018taking a long position’. WHAT IT IS IN ESSENCE Taking this position doesn\u2019t necessarily mean buying an asset. Derivatives like spread bets, CFDs and futures […]<\/p>\n","protected":false},"author":4,"featured_media":6975,"parent":3032,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"content-type":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"class_list":["post-3423","page","type-page","status-publish","has-post-thumbnail","hentry"],"yoast_head":"\nWHAT IT IS IN ESSENCE<\/b><\/h4>\n
HOW TO USE<\/b><\/h4>\n