Long and Short term time in Forex Trading

Currency pairs
Currency prices are defined by their exchange rates. The exchange rate can make us see how much of a currency can be bought with another currency. When forex brokers show currency exchange rates, they usually show the base currency first, then the quote currency. For example, Euros and dollars, the most common currency pair on the stock market, is the euro and the US dollar. The currency pair is always displayed in this way; Never listed on the reverse.
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When a merchant buys euros and dollars, buys euros and sells dollars in real time. If you want to buy dollars and sell euros, you would sell the EUR / USD. The price shown with a currency pair tells the buyer the amount of the base currency, in this case the euro, will buy the quoted currency, which in this scenario is the US dollar. EUR / USD = 1.4760 shows that € 1 buys 1.4760 dollars.

There are various currency pairs traded, however, most can not experience much volume, which can make profitable trading more difficult. 3 currency pairs with the volume of large trades are EUR / USD; USD / JPY – The dollar and the Japanese yen; and the GBP / USD – Great Britain pound and the US dollar.

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When a Forex trader buys currency and holds it, hoping to sell when the market price rises, he has a long position in that currency pair. For example, he buys euros and dollars at 1.4532 and holds a long position in it until the market price reaches 1.4635, then sells and takes profits. The merchant aims to get a profit by selling the currency for a higher price than he bought it.

Short Term
The opposite side of a long position is the position and short term. As for example when a trader generates money in this trade by selling a currency pair and then buy when the price goes down. She wants to make a profit by buying a currency pair back at a cheaper price than she originally sold it to. Forex and securities markets can allow traders to sell assets that do not belong to us, or in many cases, traders could borrow, sell and then buy again for profit and return security. One way of thinking about short positions is that a trader has a negative amount of the currency pair.

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