Long
Trading BasicsA trade position where you buy a currency pair expecting it to rise. Going long on EUR/USD means buying euros and selling US dollars.
What Does Going Long Mean?
Going long means buying a Currency Pair with the expectation that it will increase in value. When you go long on EUR/USD, you are buying euros and simultaneously selling US dollars. If EUR/USD rises from 1.0850 to 1.0900, your long position profits by 50 Pips.
Long Position Example
You analyze EUR/USD and expect the euro to strengthen. You buy one standard Lot at 1.0850, set a Stop-Loss at 1.0820 (30-pip risk), and a Take-Profit at 1.0920 (70-pip target). If the price reaches your target, your profit is 70 pips x $10 = $700. If it hits your stop-loss, your loss is 30 pips x $10 = $300.
When to Go Long
Traders go long when their analysis suggests the base currency will strengthen against the quote currency. This could be based on technical analysis (uptrend, support bounce, bullish pattern) or fundamental analysis (stronger economic data, expected rate hike, improving risk sentiment). Our Forex Trading for Beginners covers how to identify long trade setups.
Related Terms
Short
A trade position where you sell a currency pair expecting it to fall. Going short on EUR/USD means selling euros and buying US dollars.
Buy
To open a long position by purchasing a currency pair at the ask price. You buy when you expect the base currency to strengthen against the quote currency.
Sell
To open a short position by selling a currency pair at the bid price. You sell when you expect the base currency to weaken against the quote currency.
Bullish Engulfing
A two-candle bullish reversal pattern where a large green candle completely engulfs the body of the preceding red candle. It signals strong buying momentum after a decline.