Quote:
Originally Posted by soul
So far I have learnt on my own that I can sell a currency that I do not own i.e. going short and I think that's how I can make a profit by selling first and then buying later when the market goes down in the previous question that we discussed. Right?
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Right
Quote:
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Originally Posted by soul
Do I have to buy after I go short i.e does my following order have to be "long" if I go "short" first?
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Daydreamer pretty much answered this but, just to clarify:
If you go short (sell currency first), then you would
close your current position when the price goes down to the level where you want to take your profit.
This is not the same as opening another position (placing another order).
With most brokers, buying
will cancel a short position but, with some brokers, buying will open another
long position and leave your short position open! You don't want to do that.
So, the proper way to do it is to
close your current position.
Your next order can be whatever you want. There are no restrictions just because you shorted the previous order.