“Going long” is a common term used in trading, and it refers to buying a security with the expectation that its price will rise in the future.
Traders or investors “go long” when they believe that market conditions are or will be in their favor, leading to an increase in the price of the security.
For example, in the context of forex trading, if a trader believes that the value of the euro will increase against the U.S. Dollar, they could “go long” on the EUR/USD currency pair.
This means that they are buying euros and selling U.S. Dollars with the expectation that they will be able to sell the euros at a higher price later.
It’s worth noting that the opposite of “going long” is “going short” or shorting a security.
This involves selling a security with the expectation that its price will decrease in the future, allowing the trader to buy it back at a lower price for a profit.