Long Position
Buying an asset with the expectation that its price will rise.
Going long means buying an asset expecting its price to rise. In forex, going long EUR/USD means buying euros and selling dollars.
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
Long Position Example
Say you buy 0.5 lots of GBP/USD at 1.2700 and it rallies to 1.2800. That 100-pip rise at $5 per pip banks about $500 before costs. Every pip up pays you. Every pip down bills you.
How Traders Use Long Position
Go long where structure supports it: above support, with trend, after confirmation. Size from the stop below, not from enthusiasm above, and scale out into strength instead of praying for the top.
Related Terms
Put Your Knowledge Into Practice
Compare regulated brokers and find the best one for your trading style.