Long
Assume a linear EUR/USD position of EUR 10,000 bought at Ask 1.1000 and sold at Bid 1.1010. Price P&L is USD 10. Selling instead at 1.0990 gives −USD 10, before commission and financing. Spread is already reflected in the executed price difference.
Relative price exposure
Long EUR/USD benefits when EUR rises relative to USD, not necessarily against every currency. The actual quantity and payoff come from the contract specification. A cash-settled CFD does not supply EUR for paying an invoice; deliverable exchange has distinct obligations.
Opening and closing
Under conventional two-way quoting, a purchase opens or increases a long and a sale reduces it. In netting, a sufficiently large sale can reverse the position. A hedging account can instead retain separate tickets. Confirm the accounting mode and actual execution rather than infer position state from a button label.
Cash risk and costs
Translate the entry-to-assumed-exit distance into the quote-currency loss for the chosen units, then convert and add costs absent from fills. Margin is collateral, not the loss budget. A long can lose beyond an ordinary stop trigger during a gap; the direction label does not describe a safe leverage or recommended position size.
FAQ
Does long EUR/USD benefit from a falling EUR/USD price?
No. Before costs, the stated long has positive exposure to a rise in that quoted price.
Can a rising price still leave a net loss?
Yes. A small price gain can be outweighed by charges or other account effects.
