What Are 'Long' and 'Short' Positions?

In trading, “going long” and “going short” are fundamental concepts that describe the direction of your trade.
 
When you “go long” on an asset, you are buying it with the expectation that its price will rise. This is the most common type of trade, similar to buying a stock expecting its value to increase over time.
Conversely, “going short” means selling an asset you do not currently own, with the intention of buying it back later at a lower price. This allows you to profit when the market falls. While it may sound complex, short selling is a standard practice in markets that allow it, such as forex, CFDs, and futures.
 
Understanding these terms is essential—they form the basis of every trade you place, regardless of the market you are trading.

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