Commodity Trading Long and Short and Charts

In commodity trading, there are two types of commodity trades, these are:

• Long (buy) - long is if the commodity trend is buy/bullish.
• Short (sell) - short is if the commodity trend is sell/bearish.

Buying/Long and Selling/short in Commodity Trading

Both terms in Commodity Trading, refer to things we do when open a commodity trade.

Buying Long - commodity trading term to use when buying and when opening a commodity trade.

Selling short - commodity trading term to use when selling and when opening a commodity trade.

Long - Long is another term used to refer to buying in commodity trading, If a trader goes long it means that he buys the commodity trading instrument that is heading in an upward trend direction. When the commodity price is moving in an upward commodity trend the trend is referred to as bullish commodities trend.

Short - Short is a term used to refer to selling of a commodity trading instrument that is going in a downward trend direction. When the commodity price is going downwards then it is referred to as a bearish commodities trend.

Basically the term, "selling short" can be refer to selling in the commodities trading markets. Selling short is used to transact a commodity trading instrument that is predicted to depreciate in value compared to another, when this commodity is sold then it is the same as not holding value in this commodity trading instrument and holding the same value in another form against which this commodity trading instrument is traded against - mostly US Dollars.

Buy/Long

If the commodity price is going up we buy, this is referred to as going long - Therefore long is just another name for buy. When the commodities trading market commodity trend is going up it is referred to as bullish, this is when a commodity buy trade is placed. A bullish commodity trend is identified by drawing an upward commodity trendline on a commodities trading chart. The example shown below shows a long/buy commodity trade signal.

Buy/Long

Sell/Short

If the commodity price pair is going down we sell, this is referred to as going short. When the commodities trading market commodity trend is going down it is referred to as a bearish. The example shown below shows a downward trend, this is when a short sell is placed. The short/sell is identified by drawing a downward commodity trendline on a commodities trading chart. The example shown below shows a short/sell commodity trade signal.

Sell/Short - Commodity Trading Buy Trade and Sell Trade

Commodity Trading Charts

A commodity chart provides a visual representation of commodity prices (drawn on the y-axis) against time (drawn on the x-axis) for commodity. The movement of commodity prices is drawn on these commodity charts. The commodity chart can be drawn as candlestick charts like the one below or as line charts or bar charts.

Commodity Trading Chart - Candlesticks Charts

The three common types of commodity charts used in commodity trading are:

• Candles Charts
• Line Charts
• Bar Charts

These 3 types are covered in the topic Commodity Trading Chart Types.

Commodities Trading Platform

This is the commodity trading software that is provided by a broker to help commodity traders place their commodity trades. Once you download and installs this commodity trading software on your computer you can then begin to trade in the Commodity Trading market. All commodity trading trades are executed through this commodity trading platform. If you want to learn a commodity trading platform, MT4 Commodity Platform is a good commodity platform to begin with.

To set these commodity orders, open MT4 Commodities Trading Software, open a "chart", right click on the "chart', choose "New Order" & then choose the commodity trading order either sell or buy as shown below. (Short Cut Keys - Press F9)

Setting Buy Long Commodity Order and Sell Short Commodity Order on MT4