long position (long position).

There are several options for the name of opened positions when trading forex, mainly the direction of orders is called buy and sell (a deal to buy or sell), but other names are often found, for example, long or short position.

long position (long position) – an operation on the stock exchange (stock, foreign exchange, commodity), during which the underlying asset is purchased. When carrying out this operation, the investor receives a profit only if the purchased transaction instrument grows.

For example , by opening a long position on the GBPJPY currency pair, you thereby buy the British pound sterling for the Japanese Yen; if the pound exchange rate rises, the transaction can be closed with a profit at a higher price, the main thing is that the spread is overcome.

A long position is opened by pressing the buy button in the trader's trading terminal, as well as by placing pending buy limit or buy stop ; in this case, the order will be executed only after the price reaches the set level.

Using this type of order implies the presence of a stable upward trend in the Forex market, otherwise the trader will be forced to close the deal at a loss.

Most long positions are opened in a bull market , further spurring the movement of the trend, but you should always take into account the fact that any significant event in the field of finance or economics can easily change the existing trend to the opposite one. In this case, the alternative to a long position will be a short one.