The Long And The Short Of It

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What does Going Long & Going Short Mean in Trading?

When trading in the financial markets, people buy & sell assets such as currencies, commodities & stocks by “going long” or “going short” on them. Going long is a popular industry term used lớn describe the act of buying. On the flipside, going short is a term investors & traders use khổng lồ describe the act of selling. Traders will go long when they expect that the price of the asphối will rise. Alternatively, they go short when they expect that the price will fall. This is because in forex, as well as all other markets & businesses, traders make their profits when they buy low and sell high.

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So, for example, if someone goes short on the EURUSD, they are expecting the price of the EUR to lớn fall so that they buy it at a lower price and make a profit. Losses are incurred in the event of buying low và selling even lower, or selling high và buying even higher. Whether traders buy or sell first doesn’t matter, profits & losses can be made in any order.


Disclaimer: This written/visual material is comprised of personal opinions & ideas. The nội dung should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation khổng lồ purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees bởi not guarantee the accuracy, validity, timeliness or completeness of any information or data made available và assume no liability for any loss arising from any investment based on the same.

Risk Warning: There is a high level of risk involved with trading leveraged products such as forex and CFDs. You should not risk more than you can afford to thất bại, it is possible that you may thua trận more than your initial investment. You should not trade unless you fully understvà the true extent of your exposure to lớn the risk of loss. When trading, you must always take into consideration your level of experience. If the risks involved seem unclear lớn you, please seek independent financial advice.


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Risk Warning: Trading Forex & Leveraged Financial Instrumentsinvolves significant risk and can result in the loss of your invested capital. You should not invest more than you can afford to thua kém và should ensure that you fully underst& the risks involved. Trading leveraged products may not be suitable for all investors.Trading non-leveraged products such as stocks also involves risk as the value of a stoông xã can fall as well as rise, which could mean getting bachồng less than you originally put in. Past performance is no guarantee of future results.Before trading, please take into consideration your màn chơi of experience, investment objectives & seek independent financial advice if necessary. It is the responsibility of the Client lớn ascertain whether he/she is permitted to use the services of the FXTM brand based on the legal requirements in his/her country of residence. Please read FXTM’s full Risk Disclosure.

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