A long position is taken on a FOREX currency when the traders purchase a particular currency in hopes of selling it at a higher price. If a trader perceives that the value of a given currency is going to increase over an extended time, this is the perfect opportunity to take a long position on that currency.
A short position is taken when an investor projects the currency value be going
down, and sells it at its present value in the hope that the value continues to drop,
then purchase it again at a lower price. This strategy is best if the trader foresees a
drop in the currency price, and
wants to profit or prevent loss.