Forex Dictionary Terms

Long Position

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Definition – What does Long Position mean?

A long position refers to a trade that will profit if a specific currency appreciates relative to other currencies. A long position usually refers to multiple trades that are set to profit on the rise of the target currency. The concept of a long position is not a perfect fit for currency trading, but this phrase is frequently used.

ForexTerms explains Long Position

Because currencies trade in pairs, every trade is technically a combination of a long and short positions. However, traders often use long position to refer to a larger bet on the future value of one currency. For example, a long position in the U.S. dollar may mean a trader has went long in the USD in all the major currency pairs. That said, it could simply mean that the trader is long the USD in a single pair like the USD/JPY – which is the same as saying he or she has a short position in the yen. A long position in any currency means that a trader is hoping that currency will appreciate.

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