Going long means entering a buy position based on the expectation that prices will rise. Profit is generated when the market price increases above the entry price and the position is later sold at a higher level.
In foreign exchange trading, going long on EUR/USD, for example, means buying euros while simultaneously selling US dollars. Going long is the most intuitive form of trading and follows the classic principle of “buy low, sell high.”
The position size, entry price, and risk management through stop-loss orders determine the overall risk of a long position. In an uptrend, long positions benefit from the prevailing market momentum.
In declining or sideways markets, holding long positions can carry increased risk.
