Forex Long and Forex Short and Forex Charts
In Forex trading, there are two types of trades, these are:
- Long (buy trade) - long is if the trend is buy/bullish.
- Short (sell trade) - short is if the trend is sell/bearish.
Buying/Long and Selling/short
Both terms, refer to things we do when open a trade.
Buying Long = forex term to use when buying and when opening a buy trade.
Selling short = forex term to use when selling and when opening a sell trade.
Long - Long is another forex term used to refer to buying in forex trading, If a trader goes long it means that he buys the currency pair that is heading in an upward forex trend. When the price is moving in an upward forex trend the trend is referred to as bullish forex trend.
Short - Short is a forex term used to refer to selling of a currency pair that is going in a downward trend. When the price is going downwards then the trend is referred to as a bearish forex trend.
Basically the forex term, "selling short" can refer to selling currencies in the forex markets. Selling short is used to trade a currency that is predicted to depreciate in value compared to another, when this forex currency is sold then it is the same as not holding value in this forex currency and holding the same value in the other forex currency.
Buy/Long
If the price is going up we buy, this is referred to as going long. Therefore, long is just another name for buy. When the forex market trend is going up it is referred to as a bullish forex trend, this is when a buy order is placed. A bullish forex trend is identified by drawing an upward forex trend-line on a chart. The forex example below shows a long/buy signal.
Buy/Long - How to Open a Buy Forex Trade - Going Long in Forex Trading
Sell/Short
If the price is going down we sell, this is referred to as going short. When the forex market trend is going down it is referred to as a bearish forex trend. The example below shows a downward forex trend, this is when a short sell is placed. The short/sell is identified by drawing a downward forex trend-line on a chart. The forex example below shows a short/sell signal.
Sell/Short - How to Open a Sell Forex Trade - Going Short in Forex Trading
Forex Charts - What are Forex Charts?
What are Forex Charts? A Forex chart provides a visual representation of exchange rates (plotted on the y-axis) against time (plotted on the x-axis) for a given currency pair. The movement of prices is plotted and drawn on these charts. The chart can be plotted as forex trading candlestick charts like the one shown below or as forex line charts or forex bar charts.
Forex Chart - Forex Candlesticks Charts Described - What are Forex Charts?
The three common types of charts used in forex trading are:
- Forex Candlestick Charts
- Forex Line Charts
- Forex Bar Charts
These 3 types of charts are covered in the topic Forex Chart Types.
Platform - What are Forex Trading Platforms?
What is a forex platform? - Forex platform is software that is provided by a broker to help traders make place their forex trade transactions online. Once you download and install this forex platform software on your computer you can then begin to forex trade in the forex market. All forex trade trade transactions are executed through this forex platform. If you want to learn a forex platform, MT4 Forex Software is a good forex platform to start with.
To set these buy & sell forex trading orders, open MT4 Platform, open a "chart", right click on the "chart', choose "New Order", then choose order either sell order or buy order as shown below. (Short Cut Keys - Press F9)
Setting Buy Long & Sell Short in MT4 - How to Open Buy & Sell Orders on MetaTrader 4
