long position (long position).

There are several different names for the positions opened when trading on Forex. The order directions are generally referred to as buy and sell, but other names are also common, such as long or short position.

A long position is a transaction on the stock exchange (stock, currency, or commodity) in which the underlying asset is purchased. When performing this transaction, the investor only profits if the purchased instrument grows.

For example , by opening a long position on the GBPJPY currency pair, you are buying the British pound sterling for the Japanese yen. If the pound rises, the transaction can be closed with a profit at a higher price, as long as 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 only be executed once the price reaches the set level.

Using this type of order requires a stable uptrend in the Forex market; otherwise, the trader will be forced to close the trade at a loss.

Most long positions are opened during a bullish market , further accelerating the trend. However, it is always important to consider that any significant financial or economic event can easily reverse the existing trend. In this case, a short position is an alternative to a long position.