Going Long / Short
Trade MechanicsGoing long means buying, expecting the price to rise; going short means selling first, expecting the price to fall.
Going long means buying a currency pair (or asset) because you expect its price to rise, profiting if it does. Going short means selling first with the expectation the price will fall, allowing you to buy it back later at a lower price and profit from the difference.
Forex is naturally suited to shorting since every trade involves simultaneously buying one currency and selling another — there's no separate "borrowing" step required, unlike shorting individual stocks.
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