Tuesday, January 4, 2011

Going long

No, we’re not talking about running out deep for a football
pass. A long position, or simply a long, refers to a market posi-
tion in which you’ve bought a security. In FX, it refers to having
bought a currency pair. When you’re long, you’re looking for
prices to move higher, so you can sell at a higher price than
where you bought. When you want to close a long position,

you have to sell what you bought. If you’re buying at multiple
price levels, you’re adding to longs and getting longer.

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