Currency trading opening a position - forex trading calendar

Currency trading opening a position ~ forex trading calendar

The reason for trading the forex market is to make money. You do this through the positions you take by means of buying and selling a different set of currencies. When a currency rises in value after you have bought it at a lower price, you realize a profit when you close the position at a higher price. At the moment you close the working order, you are selling back the base currency and buying its counterpart currency.
The position, or order, represents the net amount of exposure in a particular currency and in its counterpart currency because they always work in pairs. The position is said to be flat when there is no exposure, long if more currency has been bought than sold, and short if more currency has been sold than bought. When you perform currency trading , you are exchanging one currency for another, expecting that the currency that you buy will see its value rise in comparison with the currency you sell in the operation. In the forex market, currencies trade in pairs. If we decide to realize the profit, we need to sell back the currency that we bought earlier at the higher current price. This is fundamental to understand how to trade forex
Purchasing a particular currency pair, where you are also acquiring a certain amount of the base currency and selling the same amount of the quote currency, is also called going long or longing the market. In the inverse position, we are shorting the market or going short in a particular base currency ( when you see that its value is decreasing with respect to the quote currency ).
One is said to be long in one currency when we buy it and short in that currency when we sell it. Long positions use the ask price of the quotes. Short positions use the bid price of the quotes.
Trading currency pairs is simultaneous and symmetrical. This implies that we will always be long in one currency and short  in another at the same time. A position that is active will be called an open position. Its value will change depending on fluctuations in market rates. Profits and losses will be influence the margin account but will not be official until the position has been closed.
More info for Currency trading opening a position ~ forex trading calendar:

Related Posts by Categories