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What is the difference between a Long or Short position in Forex?

When a currency pair is Long, the first currency is bought while the second currency is sold. To "go long" means you are buying in anticipation that the price will rise. A Short position occurs when the first currency is sold while the second currency is bought. "Going short" on a currency means you are selling it and hoping the market price will decline.

Additional Information

What is Over The Counter (OTC) trading? Can I hold positions over the weekend and major holidays? How do I know when major economic news announcements are due?