Quote:
Originally Posted by deyler
I feel extremely stupid b/c I have asked this question at Forexfactory and got the answer but I cant visualize the concept. I just dont get it. I understand buying low and selling high but I cant understand this shorting thing. Can someone please explain this slowly and use every effort to "idiot proof" it for me.
Thanks
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Okay, you dont need to look at it like you actually have to own something... it's not like you have to own eur/usd to sell eur/usd. look at it like placing a bet at a roulette table... when you place money on red 9 for example, you dont own red 9 to start with, you're just saying i bet its going to stop on red 9, so, when you "short" you sell, and by doing so you are basically saying i think it's going to go down, so i will sell and make money. does this make it make more sense?