"Long" or "Short" refers to holding a buy position (Long) or a sell position (Short) in FX or CFD trading.
Long Position
A long position refers to holding a buy (BUY) position. Traders buy an asset expecting its price to rise, then sell it at a higher price to make a profit.
For example, if you buy 0.1 lot (10,000 units) of USD/JPY at 150 and sell it at 151, you make a 10,000 JPY profit. However, if the price drops to 149, you incur a 10,000 JPY loss.
Short Position
A short position refers to holding a sell (SELL) position. Traders sell an asset expecting its price to drop, then buy it back at a lower price to make a profit.
For example, if you sell 0.1 lot (10,000 units) of USD/JPY at 150 and buy it back at 149, you make a 10,000 JPY profit. However, if the price rises to 151, you incur a 10,000 JPY loss.
KNOWLEDGE
A position refers to an open trade held after order execution until it is closed.
Was this article helpful?
That’s Great!
Thank you for your feedback
Sorry! We couldn't be helpful
Thank you for your feedback
Feedback sent
We appreciate your effort and will try to fix the article