Go long or short
With us, you’ll trade forex with either spread bets or CFDs. Both are financial derivatives, meaning you can go long or short.
Going long means that you expect the price of a forex pair to rise, while going short means that you expect the price to fall. You’d go long if you think the base currency will strengthen against the quote currency, meaning you expect the pair’s price to rise. Alternatively, you’d go short if you think that the base will weaken against the quote, meaning that you expect the pair’s price will fall.
For reference, the base currency is always on the left of a currency pair and the quote currency is always on the right. The price for a forex pair states how many of the quote currency you would have to sell in order to buy a single unit of the base.
It’s important to note that spread bets and CFDs are leveraged, which we’ll cover further below.
