Forex Long and Forex Short and Forex Trading Charts
In Forex trading, there are two types of trades, these are:
- Long (buy forex trade) - long is if the trend is buy/bullish.
- Short (sell forex trade) - short is if the trend is sell/bearish.
Buying/Long and Selling/short
Both terms, refer to things we do when open a forex trade.
Buying Long = forex term to use when buying and when opening a buy forex trade.
Selling short = forex term to use when selling and when opening a sell forex 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 trend. When the price is moving in an upward 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 foreign exchange 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.
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 trend line on a forex chart. The forex example below shows a long/buy signal.
Buy/Long - How to Open a Buy Forex Trade - Going Long in Forex Trading
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 trend, this is when a short sell is placed. The short/sell is identified by drawing a downward trend line on a forex 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 forex charts. The forex trading chart can be plotted as forex candlestick charts like the one below or as forex line charts or forex bar charts.
Forex Chart - FX Trading Candlesticks Charts Explained - What are Forex Trading Charts?
The three common types of forex charts used in FX trading are:
- Forex Candlestick Charts
- Forex Line Charts
- Forex Bar Charts
These 3 types of forex trading charts are covered in the topic Forex Chart Types.
Forex Platform - What are Forex Trading Platforms?
What is a forex trading platform? Forex trading platform is the software that is provided by a forex broker to help traders make place their trade transactions online. Once you download and install this forex trading platform software on your computer you can then begin to trade in the Foreign Exchange market. All trade transactions are executed through this forex trading platform. If you want to learn a forex platform, MetaTrader 4 Platform is a good forex platform to start with.
To set these buy and sell forex trading orders open MetaTrader 4 Platform, open a "chart ", right click on the "chart ", select "New Order ", then select the order either sell order or buy order as shown below. (Short Cut Keys - Press F9)
Setting Buy Long and Sell Short on MetaTrader 4 Platform - How to Open Buy and Sell Forex Trading Orders on MT4 Platform