Long, Short, Cash

Forex markets use the same expressions and rules of selling

and buying as other financial markets. Currency trading involves

buying and selling, so being understanding these terms is

necessary.

Long

Long position means same in all the financial markets.

If you buy a stock or currencies you are hoping for prices to

move higher. In forex you bought currency piar. You are looking

to sell currency pair at a higher price. To get you money from

the market you have to sell stock or currency pair.

Short

A short position means that you sold stock or currency pair

that you havent owned. When you sell short a stock, it means

you have to borrow the stock from your broker. Of course you

have to pay fee to you broker. In forex market it means you sold

a curreny pair. When you sell currency pair, you are hoping

for currency pair to move lower in price to make money. If you add

short positions at different price leves you are adding to your

short position.

Cash

If you dont have any positions you are in cash. Sometimes this

is the best technique to avoid volatile markets or markets are in

trendless enviroment.