What's Gold Sell Short & Buy Long?
In gold trading, there are two different types of gold trades, these two types are:
- Long (buy) - long is if the gold trend is buy/bullish - going long means opening a buy trade.
- Short (sell) - short is if the gold trend is sell/bearish - going short means opening a sell trade.
Buying/Long in XAUUSD Trading vs Selling/Short in XAUUSD Trading
Both terms Buy/Long and Sell/short in Gold Trading, refer to things that traders do when they open a trade.
Buying Long - gold trading term is used when buying - when opening a buy trade.
Selling short - gold trading is used when selling - when opening a gold sell trade.
Long - Going Long is another term used to refer to buying in gold trading, If a trader goes long it means that the trader buys the gold XAUUSD that is heading in an upward trend direction. When the xauusd trading price is moving in an upward gold trend the trend is referred to as bullish xauusd trend.
Short - Going Short is a term used to refer to selling of a gold XAUUSD that is going in a downward trend direction. When the xauusd trading price is going downwards then it is referred to as a bearish xauusd trend.
What it means is that the term, "selling short" can be used to refer to selling in the xauusd markets. Selling short is used to trade a gold XAUUSD that is predicted to depreciate in value - meaning that the xauusd trading 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 gold instrument but holding the same value in another form against which this gold is traded against - mostly US Dollars.
Buy/Long
If the xauusd trading price is going up traders will buy XAUUSD, this is referred to as going long - Therefore long is just another name for buy. When the xauusd market trend is going up it is referred to as a bullish trend & this is when a gold buy trade is placed by a gold trader. A bullish gold trend is identified by drawing an upward gold trendline on a chart. The example illustrated and explained below shows a long/buy trade signal.
Buy/Long - Buy/Long Bullish Gold Trend - How to Open a Gold Trading Buy Order
Sell/Short
If the xauusd trading price is going down we sell XAUUSD, this is referred to as going short. When the xauusd market trend is going down it is referred to as a bearish xauusd trend. The example illustrated and explained below shows a downward gold trend, this is when a short sell trade is placed. The short/sell bearish trend is identified by drawing a downward gold trendline on a chart. The example illustrated and explained below shows a short/sell trade signal.
Sell/Short - Gold Trading Sell Trade - How to Open a Gold Sell Trade Order
XAUUSD Charts
A chart provides a visual representation of xauusd trading prices (drawn on the y-axis) against time (drawn on the x-axis) for gold. The movement of xauusd trading prices is drawn on these charts. The chart can be drawn as candlestick charts like the ones shown below or as line charts or as bar charts.
Gold Chart - Candles XAUUSD Charts - Gold Candlesticks Chart
The three most commonly used types of charts used in gold trading are:
- Candles Charts
- Line Charts
- Bar Charts
These 3 different types of Gold Charts are covered in the topic Gold Chart Types.
XAUUSD Trading Platform
This is the gold trading software that is provided by a broker to help traders place their xauusd trades. Once you download and install this gold trading software platform on your computer you can then begin to trade gold in the Gold Trading market/b>. All gold trading trades are executed through this trading platform. If you want to learn about trading platforms, MT4 Platform is a good trading platform to start with. Traders can also us mobile phone gold trading apps to place these xauusd trades.
To set these gold orders you as the trader will open the MT4 XAUUSD Trading Software, open a "chart", right click on "chart", select "New Order" button, then select the xauusd order - either sell or buy as shown below. (Keyboard Short Cut Keys - Press F9 Key)
Setting Buy Long Gold Trades and Sell Short Gold Trades in MetaTrader 4
