Long and Short in Forex: Buying vs Selling a Currency Pair
In forex, going long means buying a currency pair in the expectation that its price will rise, and going short means selling it in the expectation that the price will fall. Because every trade buys one currency and sells another, short selling is operationally straightforward on most retail forex platforms — a short EUR/USD position is based on the expectation that the euro will weaken against the dollar.
Key takeaways
- Long = buy the pair = expect the base currency to strengthen against the quote currency.
- Short = sell the pair = expect the base currency to weaken against the quote currency.
- A long EUR/USD position is also a short US dollar position — every trade has two sides.
- Long trades open at the ask; short trades open at the bid.
- For the same pair and position size, gains and losses per pip are the same in either direction.
Long vs short in forex
| Long (buy) | Short (sell) | |
|---|---|---|
| You expect | the pair to rise | the pair to fall |
| Base currency | bought — expected to strengthen against the quote currency | sold — expected to weaken against the quote currency |
| Quote currency | sold | bought |
| Opens at | ask price | bid price |
| Closes at | bid price | ask price |
| Profit if | price rises | price falls |
Every trade is long one currency and short another
A currency pair is a ratio of two currencies, so a view on one is automatically a view on the other.
- Long EUR/USD = long euro, short US dollar.
- Short USD/JPY = short US dollar, long Japanese yen.
That is why a similar idea can be expressed in different ways: if you expect the dollar to weaken, you could buy EUR/USD, buy GBP/USD or sell USD/JPY. Each of these trades also carries a view on the other currency — the euro, the pound or the yen — so none of them isolates the US dollar on its own, and they can produce different results.
Worked examples
Going long GBP/USD
You buy 0.20 lots (20,000 units) of GBP/USD at 1.2700 and close at 1.2760, on a USD account.
(1.2760 − 1.2700) × 20,000 = +$120, before trading costs (spread, any commission and swaps).
Going short USD/JPY
You sell 0.10 lots (10,000 units) of USD/JPY at 150.00 and buy it back at 149.20, on a USD account.
(150.00 − 149.20) × 10,000 = ¥8,000, which at 149.20 is about +$53.62, before trading costs.
Results depend on your account currency: the profit is earned in the pair’s quote currency (US dollars for GBP/USD, yen for USD/JPY) and converted into your account currency at the current rate. Try different entries, exits and account currencies with the profit calculator.
Closing a position
To fully close a long position you sell the same amount; to fully close a short position you buy the same amount back. Most platforms also allow a partial close — for example closing 0.10 of a 0.20-lot position — which reduces the position and leaves the rest open. Long trades close at the bid and short trades close at the ask — see bid and ask price.
Holding positions overnight
Positions held past the daily rollover earn or pay an overnight swap. It reflects the interest-rate difference between the two currencies as priced in the market (through tom-next or forward points), plus the broker’s markup, and it is often different for long and short positions. See overnight swaps and rollover.
Frequently asked questions
Can you short sell in forex?
Yes. On typical retail forex platforms, selling a currency pair is a standard order; you do not need to borrow the currency or own it first, because the position is a contract on the exchange rate.
Is going short riskier than going long?
For the same pair and position size, gains and losses per pip are the same in either direction. Risk primarily depends on position size, leverage and market conditions rather than direction alone, although direction can affect costs such as swaps and exposure to sudden moves in a particular currency.
Why do long and short positions pay different swaps?
Overnight swaps reflect the interest-rate difference between the two currencies, as priced in the market through tom-next or forward points, plus the broker's markup. Holding the higher-yielding currency may earn a credit, while holding the lower-yielding one usually costs a charge — so the long and short sides of the same pair can have different swaps.
Can you be long and short the same pair at the same time?
It depends on the account. Hedging accounts, such as MetaTrader 5 hedging mode or MetaTrader 4, allow opposite positions in the same pair to stay open side by side. Netting accounts combine them into a single net position. US retail forex rules generally do not allow offsetting positions in the same pair to be held open at the same time. Holding both sides also usually means paying spreads and swaps on both.
Related articles
- Bid and Ask Price in Forex: What They Mean and Which You Pay
The bid is the price you sell at and the ask is the price you buy at. Learn how bid and ask work in forex, the mid price and why charts show the bid.
- How Does Forex Trading Work? A Step-by-Step Explanation
How forex trading works — buying and selling currency pairs, how profit and loss are calculated, the role of brokers, leverage and trading costs.
- Forex Order Types: Market, Limit, Stop and More Explained
A guide to forex order types — market, buy/sell limit, buy/sell stop, stop-limit, stop loss, take profit, trailing stop and OCO — with examples.
- What Is a Swap in Forex? Rollover and Overnight Fees Explained
A forex swap (rollover) is the overnight charge or credit for holding a position past the cut-off. Learn how swaps work, triple swaps and swap-free accounts.
Glossary terms
- Spread
The spread is the difference between the bid (sell) price and the ask (buy) price of a currency pair. It is one of the main trading costs and is usually measured in pips.
First published 26 September 2026. Last fact-checked 28 September 2026.This article is for educational purposes only and is not investment advice.