In Business Since 2001 We accept Paypal
Home Article Directory
More from Bill Platt
"Bill Platt for Book Authors" Youtube Channel
Training for Book Authors
Other Resources for Book Authors & Publishers
FictionPlots.com (350+ Plots & counting)
Please Support Our Advertisers

 
D9 Hosting


What Does Short, Long, Flat And Square Mean In Forex Trading?

Copyright (c) 2006-2023

If you are familiar with trading, you will have heard or used the terms "bull and bear" market.

The image of the bear fighting the bull refers to the directional movement of stocks or currency prices up or down.

The bull lifts up the bear with it's horns. The bear crashes it's giant arms down upon the bull.

The battle ensues and is non-stop.

If a trader is in a trade on the basis that the market is going to force the price of a currency pair upward this is known as LONG position.

SHORT position in forex trade is the other side of the coin. When the price moves down, it is possible to sell the base currency (ie the GBP in GBP/USD). When the dollar gains strength (ie the bear - sellers - starts to get the upper hand of the bull - buyers) the price will be seen to move down.

Later, the trader can "close his position" and a profit has been made.

These two ways to make a profit and movements in the market are known as "longs" and "shorts". The position you take will be long or short if you are entering a trade. Long position is "buy" position if you like and Short position is "sell" position. You can remember this because "S" is for SHORT and for SELL.

It can be confusing in forex trading because you buy and sell in pairs. The first currency in a pair is known as the base currency sometimes. So if you are in long position for the pair "EUR/USD" this means you have bought the Euro (and automatically sold the Dollar). However, if you bought the USD/CHF it means you have BOUGHT the dollar and automatically sold the Swiss Franc.

Later, when you "close your position" it is as though you have done the reverse. In fact that is exactly what you have done. The profit/loss you have made depends on the change in value between the pair, which takes place to the fraction of a second, 24 hours per day from Australia to the UK (except weekends).

That leaves us with the question, what is FLAT or SQUARE position.

Well, the answer is simple. What if you decided not to trade at all? This is known as FLAT or SQUARE position. If you are FLAT it means you decided to stay out of the market, usually because you couldn't see an opportunity to trade. If you are a gambler, you won't care if there is an opportunity to trade or not, you will miss the value in being flat or square and you will lose your money.

Being flat is therefore a position. It's a positive position to be in, because although you are not winning money, you are not losing it either.

Staying flat is the best thing to do when you're just not sure or uncertain about trading. This is why it's crucial to get a thorough understanding of a technical and fundamental strategy and learn it in "demo" until you're proficient enough and confident enough in your understanding the market and responding to it with your trading.


About The Author: Shop Amazon - Top Gift Ideas
Sam Beatson lives in Sheffield countryside, UK and owns http://www.fasttrackforex.com the Forex training crash course and coaching program via http://www.fasttrackforex.com/special He is dubbed "THE Master Forex Trainer".

VOTE ON THIS ARTICLE
Needs Work >> 0 - 1 - 2 - 3 - 4 - 5 << Excellent Article

Tell our authors what you think about their article.



Top-Level Category: Finance Articles || Related Categories: Education Articles

10 Most Recent Articles Written by Sam Beatson

The 18 Core Beliefs Of Financially Independent Investors And Businesspeople
Written by: Sam Beatson | Distributed: 2006-10-06 | Word Count: 906 | Page Views: 3717 | Votes: 16 | Rating: 1.94
Adopt these 18 beliefs for yourself and become one of the top 5% of earners by changing what you focus on, what you are and what your habits and behaviours create in your life.

Forex in a Nutshell Crash Article
Written by: Sam Beatson | Distributed: 2006-06-15 | Word Count: 770 | Page Views: 4074 | Votes: 22 | Rating: 2.27
The Forex or foreign exchange is also known as FX, and can be traded upon by anyone from home who has an internet connection and some knowledge. Most people have the belief that trading currency is extremely risky and a gamble. However there are many ways to technically analyse the market and identify the pattern of the movement to the point we can instigate "good" trades on a consistent basis.

All of Author's Articles on this site:

Most Recent "Finance" Articles

Credit Card Companies Reward Consumers Who Shop Around
Written by: Braxton Heitz | Distributed: 2012-11-20 | Word Count: 1159 | Page Views: 7345 | Votes: 15 | Rating: 1.80
With Ronald Reagan came mass deregulation in many industries. One of the industries that benefited from deregulation was the financial industry. As a result, hundreds of new financial companies were introduced to the American consumer during the 1980's. With the sudden explosion of new competitors in this industry, credit card companies began to struggle with how to retain existing customers and to recruit new customers.

What My Mother Taught Me About Credit Cards And Family Finances
Written by: Braxton Heitz | Distributed: 2012-11-12 | Word Count: 1285 | Page Views: 7306 | Votes: 31 | Rating: 2.39
My mother is an amazing woman. She made some of the hardest jobs imaginable look easy. No matter how hard her day was, she always had a smile and perfect hair.

Understanding Your 401(k), IRA and Other Pre-Tax Investments
Written by: Irene A. Majchrzak | Distributed: 2010-08-03 | Word Count: 1005 | Page Views: 5101 | Votes: 3 | Rating: 2.00
What does all of the bad economic news mean to you, the average investor. Well, if you are still working and contributing to your pre-tax 401(k)'s, 403(b)'s, or IRA savings your strategies for salvaging your retirement will include reviewing all of the investment options found in your 401(k), etc.

Xerox Follow Apple on the Comeback Trail
Written by: Jennifer Robinson | Distributed: 2010-07-27 | Word Count: 1238 | Page Views: 5758 | Votes: 5 | Rating: 0.20
In many ways the companies share similar fortunes. Apple (founded by Steve Jobs, Stephen Wozniak, Ronald Wayne) produced the first successful personal computer with a graphical operating system. Xerox (founded by Chester Carlson, Joseph C Wilson) were the inventors of Xerography (later called the photocopier).

Payday Advance Loans Are Now Only One Toll Free Call Away
Written by: Tom Tierney | Distributed: 2010-07-27 | Word Count: 599 | Page Views: 4128 | Votes: 2 | Rating: 0.50
A friend of mine recently went through financial troubles and asked me, knowing that I'm a finance writer, if I could push him in the right direction for a short term loan to help out with his expenses. Here's his story:

Stock Market Falls Sharply
Written by: Irene A. Majchrzak | Distributed: 2010-07-27 | Word Count: 879 | Page Views: 4667 | Votes: 6 | Rating: 0.83
The stock market has been having a bad week. Wednesday the market ended the day down over 300 points. I heard reports that this was the result of investors taking their profits. Happens all the time. Then within a few days, the prices on many great stocks is so low that the investors are buying the stocks right back up.

Finding the Best Credit Card Applications
Written by: Jeffrey Weber | Distributed: 2010-07-27 | Word Count: 403 | Page Views: 3724 | Votes: 2 | Rating: 0.00
Online credit card applications can be confusing. That's the way the banks want them. This article will help eliminate some of the confusion.

Do You Know the Difference Between an Investment Advisor and a Broker?
Written by: Tome Tomaj | Distributed: 2010-03-11 | Word Count: 408 | Page Views: 4497 | Votes: 6 | Rating: 3.00
As an fee-only investment advisor I come across clients from all walks of life. Lately I have noticed something in common with many of these investors. Many do not know the difference between an investment advisor and a broker who manages and/or makes securities recommendations for their clients' investment portfolios. With the almost unprecedented volatility in the securities markets, you cannot afford to dig your head in the sand when it comes to whom is managing your assets.

Understanding Term Life Insurance and Getting Quotes
Written by: Brian Greenberg | Distributed: 2010-01-13 | Word Count: 520 | Page Views: 4459 | Votes: 3 | Rating: 1.00
Buying term life insurance can be a scary process but understanding the different types of life insurance can remove the fear. What you should know about term life and how requesting life insurance quotes online can be easy and very convenient.

The Decline in the Personal Savings Rate - What Happened to the Discipline?
Written by: Tome Tomaj | Distributed: 2009-12-15 | Word Count: 873 | Page Views: 5117 | Votes: 6 | Rating: 1.33
As more and more American baby boomers are nearing and entering their retirement years, many of them are concerned about whether their retirement savings will last them long enough to ensure their current quality of life, and rightly so.

Most Viewed "Finance" Articles

A Better Way To Sell A Structured Settlement - Via Auction
Written by: Clayton Frantz | Distributed: 2007-11-30 | Word Count: 1342 | Page Views: 11874 | Votes: 12 | Rating: 1.92
Structured settlements were introduced in Canada and the United States in the 1970's. They were introduced as an alternative to lump sum payments, common in insurance settlements and lottery winnings. In the decades since, they have also been accepted as legal financial instruments in England and Australia. In a nutshell, a structured settlement by legal definition is a statutory agreement to pay a specified sum of money over a period of time, on a payment system.

Using a 401K Loan to Stop Foreclosure
Written by: Daniel Lamaute | Distributed: 2008-02-11 | Word Count: 465 | Page Views: 10751 | Votes: 19 | Rating: 1.79
A bankruptcy or foreclosure can cripple one's ability to obtain decent credit for many years. In addition, some employers and landlords won't hire or rent to a candidate with terrible credit history. Thus, it is a good idea to discuss all options with a financial planner before ending in bankruptcy or foreclosure.

Why Over 3,000 US Companies Have Chosen the Frankfurt Stock Exchange to Go Public
Written by: Ron Crowe | Distributed: 2008-07-31 | Word Count: 786 | Page Views: 8526 | Votes: 18 | Rating: 1.83
The Frankfurt Stock Exchange, one of the world's largest trading centers for securities, has over 3,000 United States companies listed. North American and other foreign companies are choosing Europe, over the United States, to go public because of the punishing Sarbanes Oxley Act introduced in the United States in 2002.

Advantages and Disadvantages of Individual and Group Health Insurance
Written by: Kevin Kielty | Distributed: 2009-04-01 | Word Count: 639 | Page Views: 7646 | Votes: 14 | Rating: 2.00
The cost of individual and group health insurance coverage varies greatly as does the type of coverage they both offer. Making the switch can bring some surprises.

How to Hide Assets
Written by: Rocco Beatrice | Distributed: 2007-01-19 | Word Count: 507 | Page Views: 7492 | Votes: 12 | Rating: 1.08
How to hide your assets by repositioning your assets through an irrevocable trust with an independent trustee.

Credit Card Companies Reward Consumers Who Shop Around
Written by: Braxton Heitz | Distributed: 2012-11-20 | Word Count: 1159 | Page Views: 7345 | Votes: 15 | Rating: 1.80
With Ronald Reagan came mass deregulation in many industries. One of the industries that benefited from deregulation was the financial industry. As a result, hundreds of new financial companies were introduced to the American consumer during the 1980's. With the sudden explosion of new competitors in this industry, credit card companies began to struggle with how to retain existing customers and to recruit new customers.

What My Mother Taught Me About Credit Cards And Family Finances
Written by: Braxton Heitz | Distributed: 2012-11-12 | Word Count: 1285 | Page Views: 7306 | Votes: 31 | Rating: 2.39
My mother is an amazing woman. She made some of the hardest jobs imaginable look easy. No matter how hard her day was, she always had a smile and perfect hair.

The Effect of Inflation and Deflation on Retirees
Written by: Irene A. Majchrzak | Distributed: 2009-10-27 | Word Count: 1324 | Page Views: 6613 | Votes: 7 | Rating: 0.86
When we worry about how long our retirement income will last, we consider so many factors. The current economy is causing a drain on 401(k)'s and IRA's. So we have become much more cautious about withdrawing money to use it as part of our pensions.

How to Avoid Private Mortgage Insurance (PMI)
Written by: Jim Cramer | Distributed: 2008-02-20 | Word Count: 523 | Page Views: 6542 | Votes: 8 | Rating: 2.00
There is more than one way to get your desired home without having the 20 percent down payment and avoid PMI at the same time.

The Good, the Bad, and the Ugly: Why Your Broker May Not Be Recommending The Most Competitive Annuity
Written by: Tom Hamlin | Distributed: 2006-05-12 | Word Count: 1036 | Page Views: 6301 | Votes: 12 | Rating: 2.50
There are over two thousand life insurance companies offering over fifteen thousand different annuities, and they run the gamut from horrific (I wouldn't offer it to an enemy) to outstanding...

Highest Ranked "Finance" Articles

Identity Theft: The New Threat to Your Credit
Written by: Josh Pike | Distributed: 2006-08-24 | Word Count: 363 | Page Views: 4893 | Votes: 16 | Rating: 3.00
When we think of thieves, images of burglars creeping into homes and apartments come to mind. However, there are new thieves that can take much more than your money or possessions. If your personal information falls into the hands of an identity thief, your credit and finances can be ruined.

In Fear of Retirement
Written by: Daniel Lamaute | Distributed: 2008-05-08 | Word Count: 646 | Page Views: 4311 | Votes: 9 | Rating: 3.00
Many baby boomers are staring at retirement like a deer caught on oncoming headlights. They are not sure what to do or what else to do. They fear that whatever they have in savings just might not be enough. Less than 1 out of 5 workers felt very confident about having enough money for a comfortable retirement, according to the April 2008, EBRI Retirement Confidence Survey. And with good reasons, inflation is zooming at the same time that asset values are flagging.

Do You Know the Difference Between an Investment Advisor and a Broker?
Written by: Tome Tomaj | Distributed: 2010-03-11 | Word Count: 408 | Page Views: 4497 | Votes: 6 | Rating: 3.00
As an fee-only investment advisor I come across clients from all walks of life. Lately I have noticed something in common with many of these investors. Many do not know the difference between an investment advisor and a broker who manages and/or makes securities recommendations for their clients' investment portfolios. With the almost unprecedented volatility in the securities markets, you cannot afford to dig your head in the sand when it comes to whom is managing your assets.

Medicaid Asset Protection
Written by: Rocco Beatrice | Distributed: 2007-01-23 | Word Count: 646 | Page Views: 4660 | Votes: 9 | Rating: 2.78
Learn how to include senior Medicaid asset protection as part of your senior tax planning strategies. What are the tax implications of Medicaid and why it needs to be planned carefully? About seniors Medicaid asset protection as part of the senior tax planning strategies. Explains the new 5-year look back provisions for seniors to qualify for Medicare assistance into nursing home program.

How Do You Make Money In Currency Trading?
Written by: Tom Howze | Distributed: 2007-12-05 | Word Count: 727 | Page Views: 3793 | Votes: 9 | Rating: 2.78
The question, "How do you make money in currency trading?" is being asked by investors and potential investors worldwide as they witness the multi-year downturn trend of the US dollar and upswings in other currencies such as the Euro or Canadian Dollar.

Equipment Financing and The Five Cs of Credit Evaluation
Written by: Sean Marten | Distributed: 2007-10-17 | Word Count: 698 | Page Views: 4453 | Votes: 8 | Rating: 2.75
Equipment financing lenders, as well as banks, use the Five Cs to evaluate loan applications: Character, Credit, Cash Flow, Capacity and Collateral. However, while banks look at small-to-medium size companies from a Fortune 500 perspective, equipment financing companies see applicants from a small business perspective, which highlights a sixth C: Common Sense.

Reverse Mortgage Costs Are Not Too High
Written by: N. Sioris | Distributed: 2008-07-29 | Word Count: 1120 | Page Views: 4430 | Votes: 8 | Rating: 2.75
Reverse mortgage costs are repeatedly cited as one of the main reasons for seniors not to get a reverse mortgage loan. However, the same folks that harp on costs as being a reason not to use this financial resource rarely offer a less expensive option or an alternate proposal. Don't fall into the trap of listening to the negative hype without doing your own research. Find out what the true costs are and whether they are justified or not. Compare the cost of a reverse mortgage to the cost of selling your home, downsizing or moving into assisted living. Pull back the curtain and take a good look, then make your own determination. Don't base your decision on an uninformed friend, relative or media reporter.

A Recipe for Good Credit
Written by: Josh Pike | Distributed: 2006-08-17 | Word Count: 369 | Page Views: 3890 | Votes: 15 | Rating: 2.73
If your credit is not as good as you want it to be, take action now! It's easier than you think to improve your credit.

Why You Should Buy a Home Now
Written by: Clint Wooley | Distributed: 2007-01-09 | Word Count: 588 | Page Views: 3899 | Votes: 11 | Rating: 2.73
These days there is literally too much information for first time homebuyers to make a decision sometimes. Fear can prevent first time home buyers from ever acting on their dream of home ownership. When you look at facts, though, buying a home makes as much sense now as it ever has.

How to Find Financial Freedom
Written by: Kent Jacobson a.k.a. Mr. Success | Distributed: 2006-09-26 | Word Count: 457 | Page Views: 5033 | Votes: 14 | Rating: 2.71
Many people make finding financial freedom harder than what it actually is. In order to find financial freedom all you have to do is follow a few simple steps.











Download an eBook today
 
Directory Navigation
Locate By Category:

ALL Categories
Arts & Crafts
Arts & Entertainment
Automotive
Business - Offline
Business - Online
Career
Computers
Education
Family
Finance
Food & Drink
Health & Wellness
Home & Garden
Humor
Internet
Nature & Pets
Real Estate
Religion
Self Improvement
Shopping
Society
Sports & Recreation
Technology
Travel & Leisure
Uncategorized
World Events
Writing & Speaking

Change Number of Results:
50 - 100 - 200 - 500
Article Reprint Rights
Creative Commons License

This work is
licensed under a
Creative Commons
License


You are not required to show the creative commons license notice when you reprint this work.
Article Statistics
Word Count: 525

Total Views: 8599

Article Rating: 2.68 of 5
Votes Cast: 22

More Articles By Author:



Last Distribution Date:
2006-10-11 10:48:00

Internal ID: #3700





All Articles are Copyright © 2001-2023 of the Defined Authors.

All other material and images on this site are:
Copyright © 2001-2023, ThePhantomWriters.com