In trading Forex and CFDs, your position determines whether you profit from rising or falling markets:
- Long (Buy) Position: You open a trade expecting the price of an asset to rise. If the market goes up, your position gains value.
- Short (Sell) Position: You open a trade expecting the price of an asset to fall. If the market goes down, your position gains value.
Understanding the difference between long and short positions is fundamental to executing trading strategies and managing risk effectively.
