Long/Short | Mentor Tips

Long/Short

When trading in the Forex market, a trader can either buy or sell. Should the trader decide to buy, you want the base currency that you are buying to appreciate (increase) in value compared to the currency you sell. This act is known as taking a long position in the currency you are buying. Conversely, a trader who wants to sell the base currency, as they believe it will fall in value and will then buy it back at a lower price, is taking a short position.