Going short means selling a currency pair first with the expectation that its price will fall, profiting from a decline rather than a rise.
Author: FXM680 Editorial Team
Going long means buying a currency pair with the expectation that its price will rise, profiting if that expectation proves correct.
A long position and a short position represent the two opposite directions a forex trade can take, each reflecting a different price expectation.
Buying and selling currency in forex follows a consistent practical process, regardless of which pair or broker platform you use.
A forex trade is the act of simultaneously buying one currency and selling another, based on whether you expect the pair’s price to rise or fall.
Several widely repeated beliefs about currency pair trading do not hold up well in practice, and acting on them can undermine an otherwise reasonable strategy.
The right forex pair depends less on general criteria and more on matching a pair to your specific trading style and goals.
Choosing a currency pair is a short process of weighing several factors together, from liquidity to your own trading hours.
Central banks shape the forex market through both policy decisions and forward guidance, sometimes moving currencies more with words than actions.
Inflation quietly shapes currency value by eroding purchasing power, which in turn influences how central banks respond and currency demand.