In an FX forward involving buying a foreign currency, the buyer is said to be "long" in that currency-not "short" in that currency.

Question

Quizplus · Accepted Answer

In an FX forward contract where the buyer agrees to buy a foreign currency at a future date, the buyer is taking a "long" position in that currency, meaning they are betting on the currency's value increasing. Being "short" would imply they are selling or expect the currency to decrease in value.

In an FX Forward Involving Buying a Foreign Currency, the Buyer