What does mean going long on a currency pair in Forex trading? I wonder to get an answer.
Going long means you’re buying the market. Going short means you’re selling the market.
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You go long if you believe, maybe from technical analysis of the price chart, that the exchange rate between the base currency and the counter currency is going to rise. e.g. if you believe the exchange rate between EUR and USD is going to rise, you go long on the EUR/USD pair.
This is called buying the Euro because as the rate rises, your profits increase as if you owned Euros which you want to exchange for US dollars. As the price rises, you will get more and more dollars for each Euro. But you have not actually bought Euros, you own a number of contracts that are priced in direct relation to this exchange rate - their value rises as the exchange rate rises.