Thread: My introduction
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Old 08-20-2008, 05:14 PM
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johnnykanoo johnnykanoo is offline
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Join Date: Jan 2007
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Welcome to babypips!!! You will find this a great and friendly place to learn. If you are willing to put in a little blood sweat and tears you too can be a success at forex.

Quote:
Here's one: can someone explain how you can sell a currency that you don't yet own? If I have GBP, how is it that I can sell USD before even buying them? Through what process is that actualised?
To answer your question when you buy or sell in the forex you aren't really buying or selling. In fact you are either long or short the market, but ill keep it simple.

You are not "buying" You are agreeing to buy at a certain price, so if price goes up from where you agreed to buy you made money. If you sell you are really agreeing to sell at that price if the price goes down then the differenc e in price is what you made.
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