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Tuesday, June 4, 2013

To take advantage of currency movements (buying and selling)

Unlike most financial markets, the currency market of the markets in which it is possible to achieve a profit from the rise of stores market or a bear market.

If we expect to climb

We buy (Long Buying): is the process of purchasing a pair of take advantage of the price rise, and where to buy the base currency and sell the interview.
Example:

If you suspect the high price (EUR / USD), will buy any pair you buy euro and sell the dollar.

If we expect the decline

We sell (Short Selling): is the process of selling the pair to take advantage of the price drop, and is selling the base currency and buy the interview.
Example:

If you suspect the low price (EUR / USD), will sell any pair you sell the euro and buy the dollar.

Lesson Summary:

* If you expected to climb to the exchange rate of the pair you buy.
* If you suspect the decline to the exchange rate of the pair you are selling.

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