What's Sell Short & Buy Long?

In trading, there are two different types of trades, these 2 types are:

Long (buy) - long is if the trend is buy/bullish - going long means opening a buy trade.
Short (sell) - short is if the trend is sell/bearish - going short means opening a sell trade.

Buying/Long in XAUUSD vs Selling/Short in XAU USD Trading

In the context of Gold Trading, both "Buy/Long" and "Sell/Short" refer to the actions taken by traders when initiating a trade position.

Buying Long - gold term is used when buying - when opening a buy trade.

Selling short - gold trading is used when selling - when opening a sell trade.

Long - Going Long is another term used to refer to buying in gold trading, If a trader opens long it means that the trader buys the gold XAUUSD that is heading in an upward trend direction. When price is moving in an upwards trend the market trend is referred to as bullish market trend.

Short - The term "Going Short" refers to the action of selling a XAUUSD (gold) asset when its price exhibits a downward trajectory. This declining price action is generally characterized as a bearish trend.

What it means is that the term, "selling short" can be used to refer to selling in the markets. Selling short is used to trade a gold XAUUSD that is predicted to depreciate in value - meaning that the price will likely head downwards for the gold XAUUSD, when this gold is sold then it is the same as not holding value in this instrument but holding the same value in another form against which this gold is traded against - mostly US Dollars.

Buy/Long

When prices rise, traders buy XAUUSD. This means going long, which is just buying. An uptrend is called bullish. Traders place buy orders then. Draw an upward trendline on the chart to spot it. The example below shows a long or buy trade signal.

XAUUSD Buy Long Trades vs Sell Short Trades on Trading Charts - Open Order on Trade Platform

Buy/Long - Buy/Long Bullish Trend - How to Open a Buy Order

Sell/Short

Sell XAUUSD when the price drops. This move is called going short. A falling price shows a bearish trend. The chart below shows such a down move. That's when you place a short sell order. Spot this bearish setup by drawing a down-sloping line on the chart. The image below points out a short sell signal for XAUUSD.

XAUUSD Buy Long Trades vs Sell Short Trades on xauusd Charts - How Do I Set Trade New Orders in Charts?

Sell/Short - Sell Trade - How to Open a Sell Trade Order

XAU/USD Charts

A chart is a graphical representation of trading prices (usually shown on the y-axis) against time (usually shown on the x-axis) for gold. The changes of market prices are depicted on these trading charts. The chart may be represented as candlestick charts like the ones given below or as line charts or bar charts.

Candles Charts - Trading Candles Charts Guide

Chart - Candlesticks Charts - Candlesticks Chart

The three most commonly used types of charts used in gold are:

Candles Charts
Line Charts
Bar Charts

These 3 different types of Charts are covered and discussed on the topic Chart Types.

Gold Platform

This refers to the software supplied by a brokerage firm to assist traders in executing their transactions. Once this trading application has been downloaded and set up on a personal desktop PC, the user can commence trading gold within the Gold market. All transactional activities are processed through this designated trading platform. For learning about trading platforms, the MT4 Platform Software serves as an excellent starting point for gold traders. Mobile applications are also available for placing these trades.

To establish these orders, the trader must open the MT4 Software Platform, access a "chart," right-click on the "chart," select and confirm the "New Order" button, and then choose either the sell or buy order as visualized below. (The keyboard shortcut key is: Press 'F9' Key)

Setting Buy Long Trades and Sell Short Trades on MT4 Platform - Learn How to Trade Using MetaTrader 4 Platform

Instructions for executing Buy Long and Sell Short trades within the MetaTrader 4 Platform.

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