In one lineLong = buy first and benefit if price rises. Short = sell first and benefit if price falls.
Long does not mean “safe”
If you buy EUR/USD at 1.1000 and price rises to 1.1050, the pair moved 50 pips in your favour.
Example
Buy EUR/USD at 1.1000
Price moves to 1.1050
Move = +50 pips
Short is the same idea in the opposite direction
If you sell EUR/USD at 1.1000 and price falls to 1.0950, the 50-pip move is in your favour.
Direction changes the order in which you buy and sell. It does not change the need for a stop, position sizing or risk control.
Remember this
- Long expects the pair to rise.
- Short expects the pair to fall.
- Direction is separate from risk.
Educational content.
This lesson is provided for general educational and informational purposes and is not personal financial or investment advice.