Traders who have entered the market by purchasing a financialare said to be in a long position.
It is a useful term that allows traders to distinguish between those who are buying an asset in order to enter into a marketand those who are buying an asset to close a .
If a trader is in a long position, then it is understood that they have bought an asset in the expectation that the market price will increase and will attempt to sell their investment at a higher price than they paid for it, in order to make a profit.
For example, in the following scenario, a trader entered a buy position el1 at 1.25205 and then exited tp2 with a 16 pip profit at 1.25366.
Going long: an example
Let's say you are considering buying 1,000 barrels of(oil being an asset or ). Oil is currently trading at $100 a barrel (so your purchase price is $100,000) and you believe the price is going to rise.
You buy at the intended purchase price of $100,000. The barrel price rises to $120, just as you expected. You sell the 1,000 barrels for $120,000. Going long has made you a profit of $20,000.
Read more about going long and the other fundamentals necessary before getting started with your own trading career: