Long and short: meaning in forex and gold trading
Going long means buying to profit from a rise; going short means selling to profit from a fall.
Last updated: · By Forexuro Desk · Editorial policy
Free on Telegram. Follow Forexuro on Telegram for daily gold and forex market updates, key levels and a heads up before big releases.
Free, opens TelegramDefinition
Long and short: Going long means buying to profit from a rise; going short means selling to profit from a fall.
Long and short in forex
Because every pair has two currencies, a short is as easy as a long. Long EUR/USD means buying euros and selling dollars. Short EUR/USD means the opposite. A long position opens at the ask and closes at the bid; a short opens at the bid and closes at the ask, as explained under bid and ask.
Swaps and direction
The overnight swap can differ for longs and shorts. A position in the direction of the higher yielding currency may earn a small credit, while the other side pays.
Worked example
You expect the yen to strengthen after a hawkish Bank of Japan. That means USD/JPY should fall, so you go short USD/JPY.
Common mistakes
- Confusing a strong yen with a rising USD/JPY.
- Ignoring swaps on longer held shorts.
If you follow trade signals, for example the gold signals or EUR/USD signals, understanding this term helps you size and manage each trade yourself. The free Forexuro Telegram channel shares daily market updates where these ideas are used in practice.
Related terms
Tools and guides
Frequently asked questions
What does a buy signal mean?
Go long, buying the base currency and selling the quote currency.
Can I short gold?
Yes, on CFD platforms you can sell XAU/USD.
Education only, not financial advice. Trading forex, gold and CFDs carries a high risk of losing money, and leverage magnifies both gains and losses. Past performance is not a reliable guide to future results. Read our risk disclosure.