Essential

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

Classic strategy: buy low, sell high

In forex, you're simultaneously long one currency and short another

Stop loss below entry to limit downside

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