In trading parlance, a long position is one in which a trader buys a currency at one price and aims to sell it later at a higher price. In this scenario, the trader benefits from a rising market.

A short position is one in which the trader sells a currency in anticipation that it will depreciate. In this scenario, the trader benefits from a declining market.

However, it is important to remember that every FX position requires an trader to go long in one currency and short the other.

For more information visit: www.forexgen.com