Wednesday, 17 August 2011

What Is the meaning of LONG and SHORT positions?

What Is the meaning of LONG and SHORT positions?

Project Forex & Brokerage 5BKP24RS6NCR
Is the meaning of LONG and SHORT positions?
BUY LONG or open position is a position in which a trader buys a currency at a specified price and aims to sell it later at a lower tinggi.Jadi investors benefit from a rising market (graph pair up). Suppose you buy in a position to sell at 1.1500 then 1.1525 then you'll benefit as much as 25 points / pips.

BUY LONG or open is to expect the price of currency pair (pair) UP to profit. (Graph pair up) Example: Long (BUY) eur / usd, then you expect the graph eur / usd is UP or the euro strengthened against the usd.

The rise in the price of a pair you can also interpret the currency in the pair FRONT strengthened against the currencies in the rear pair. Example: Graph Pair price eur / usd UP then it means the euro strengthened against the usd.

The price used when OPEN BUY / LONG is the purchase price (ASK) and the prices used when you close / liquid is the selling price (BID).

When we open Buy (Long) using the Ask Price, Bid Price on the table then the price should be HIGHER than Ask price (the price of an open Buy position) in order to gain profit.

For ease of position often abbreviated BUY LONG

SHORT SELL or open position is a position in which a trader sells a currency at a specified price and aims to buy later at a lower rendah.Jadi investors benefit from a down market (graph pair down).

SHORT SELL or open is to expect the price of currency pair (pair) DOWN for profit. Example: Short (SELL) eur / usd, then you expect the graph eur / usd is DOWN or the euro weakened against the usd.

The fall in the price of a pair you can also interpret the currency in the pair FRONT weakened against the currencies in the rear pair. Example: Graph Pair price eur / usd DOWN then it means weakening euro against the usd.

The price used when OPEN SELL / SHORT is the selling price (BID) and the prices used when you close / liquid is the purchase price (ASK).

When we open Sell (Long) uses the Bid Price, Ask Price on the table then the prices should be LOWER than the Bid Price (the price of open Sell position) in order to get Profit

To ease often abbreviated SELL SHORT Position

Position Open by Close with When Prices Rise When Prices Go Down
Long Buy Sell Profit Loss
Short Sell Buy Profit Loss

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