Community Forex Questions
What is long in trading?
Long in trading refers to a position that profits if the market price of an asset rises. In most cases, it refers to 'taking a long position or 'going long.' Going long is the inverse of going short or shorting, which means taking a position that profits if the market price of an asset falls.
Taking a long position does not always imply purchasing an asset. Spread bets, CFDs, and futures contracts are all derivatives that allow traders to take a long position in a market without actually purchasing the underlying asset.
Taking a long position does not always imply purchasing an asset. Spread bets, CFDs, and futures contracts are all derivatives that allow traders to take a long position in a market without actually purchasing the underlying asset.
In trading, long refers to buying an asset with the expectation that its price will rise, allowing the trader to sell it later at a profit. Going long implies a bullish outlook on the market or a specific asset, such as stocks, forex, commodities, or cryptocurrencies.
When a trader takes a long position, they own the asset outright or hold a contract that benefits from price increases. For example, buying shares of a company in anticipation of its growth is a long position.
In derivatives markets, such as futures or options, traders can also go long by purchasing contracts. Understanding when to go long involves analyzing market conditions, trends, and fundamental factors to maximize potential gains while managing risks effectively.
When a trader takes a long position, they own the asset outright or hold a contract that benefits from price increases. For example, buying shares of a company in anticipation of its growth is a long position.
In derivatives markets, such as futures or options, traders can also go long by purchasing contracts. Understanding when to go long involves analyzing market conditions, trends, and fundamental factors to maximize potential gains while managing risks effectively.
Sep 23, 2022 19:13