Long Position
Buying an asset with the expectation that its price will rise.
Definition
Going long means buying an asset expecting its price to increase. You profit when price rises and lose when it falls. In forex, going long EUR/USD means buying euros and selling dollars.
How It Works
- Buy at current price
- Hold while expecting price increase
- Sell later at higher price for profit
- Maximum loss = purchase price (can't go below zero)
Trading Tips
1
Classic strategy: buy low, sell high
2
In forex, you're simultaneously long one currency and short another
3
Stop loss below entry to limit downside
Related Terms
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