What does it mean to have a ‘long’ or ‘short’ position?

1 min. readlast update: 12.14.2023

When a trader takes a ‘long’ position, the trader is placing a ‘Buy’ order, likewise, when a trader takes a ‘short’ position, the trader is placing a ‘Sell’ order. For example, if you go ‘long’ on an AUD/USD you are buying AUD in anticipation that it will rise against the USD, conversely, if you go ‘short’ on AUD/USD you are selling AUD in anticipation that it will lower against the USD.

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