July 19, 2016

Question:What does "Long/Short position" mean on MT4 and MT5?


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When you buy a certain currency pair, you are said to have taken a long position in that pair.

When you sell a certain currency pair, you are said to have taken a short position in that pair.

These expressions are from the way of financial markets.

Generally, traders are often seeing bull trend(up trend) for longer period, and when it comes to bear trend(down trend) the prices go down quickly in a short period.

That is why traders mention the buy position as “long position” because it lasts long time, and sell position as “short position” because it doesn’t last long time.

Please note that it is just a general opinion created, and it is not necessarily right in any financial markets.

‘Bulls and Bears’ in financial markets

For your information, Bulls and Bears have got their stories to come from.

That is the way these animals attack to enemies.

Basically “Bull Trends” means the market trend to go-up, as when a bull attacks to his enemy, it swings horns from down to up.

And “Bear Trends” means the market trend to go-down, as when a bear attacks to his enemy, it tries to push the enemy to down.

You may have seen some image photos of them already though, hope the information helped your knowledge.

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