What do the phrases “going short” and “going long” mean?
First of all, you have to realize that the understanding of these terms is relative to what is being discussed. Generally speaking, when you go long a currency it means you bought it and are holding it in the expectation that it will appreciate in value. By contrast, going short means you¡¦re selling currency in the expectation that what you¡¦re selling will depreciate in value. Specifically, if you¡¦re going long Sterling, it means you are buying or holding onto Sterling. At the same time, when you buy Sterling it means you¡¦re shorting the dollar.
