Short and Long Positions

In the trading of assets, an investor can take 2 types of positions.

1: Short Postion
2: Long. Positin

In the case of a short position, traders are hoping that a currency will decrease in the future so they sell it at a higher price and buy it back at a lower price in the future. This option is known as it GOING SHORT. For example if the New Zealand dollar against the US dollar is worth 0.7000 and the trader analysis shows that it might depreciate in the future 0.6980 the trader would sell at the high price or in other words go SHORT. Once the price depreciates to 0.6980, they buy back and make money from the price movement. In the case of the LONG POSTIONS it's the typical opposite of the short position - In which you buy low and sell high, some traders hoping for a currency to increase in the future. They usually buy at a lower price and sell it back at a higher price. This option is known as going long, these are short and long positions in a nutshell.