About buy and sell in Forex

Hi!

When you buy some product eletronic is very clear that you are buying and the store is selling, ie, you are the buyer and the store is the seller. But, in Forex, this concepts works in parallel, or not? Seems me that when you buy some currency, you are the buyer and seller simultaneously. Seems me that in Forex, buy is synonymous of receive and sell is synonymous of deliver. So, if you had X USD and another people had Y EUR and both want make an exchange, so you are buying EUR and selling USD and the other people is buying USD to you and selling EUR for you.

Correct!?!?

I think yes , you still need wait for expert reply to you,
Looking for how is the concept and forex function .
There is some article about forex is zero sum game

This is from the School page, click on link for more

What is Forex: Buying And Selling In Currency Pairs

Forex trading is the simultaneous buying of one currency and selling another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the euro and the U.S. dollar (EUR/USD) or the British pound and the Japanese yen (GBP/JPY).

When you trade in the forex market, you buy or sell in currency pairs.

Buying and Selling in Currency Pairs

Imagine each currency pair constantly in a “tug of war” with each currency on its own side of the rope. Exchange rates fluctuate based on which currency is stronger at the moment.

Read more: What is Forex: Buying And Selling In Currency Pairs

Every trading is simultaneously a buying and selling. But, no all buyer is a seller too (in terms of comercy, not forex).

Your answer not aswerd me.

It’s almost a philosophical point about the nature of trade in general and the value of “consideration”, as a contract lawyer would say, JH. It’s arguably true of of any kind of “deal” inside or outside of forex or any other kind of trading.

I thought Dennis answered you very well.

I accept that he didn’t, if you say so. But that goes to show that Dennis and I both misunderstood your question in the same way.

Please excuse my also mentioning that I’ve had the same problem with many other questions you’ve been asking recently, and that’s why I haven’t posted in those threads: I sense that your questions rest on some kind of confused understanding of something very fundamental, without ever being able to work out what it is, and this makes it terribly difficult for people to help you. Please appreciate that I’m not saying this as any kind of criticism at all. I’ve always attributed it largely to some kind of language difficulty (neither you nor I speak English as a first language and that probably makes it particularly hard for me to understand what you’re asking and why - what it is that you actually need to know, and what it is you think/suspect that might not quite be right). I’m mentioning it because I think - from the answers generally offered and your reactions to them - that there’s an awful lot of “talking at cross purposes” going on. Although I’m unable to offer a solution to that problem, I still think it might help you to know that it [B][U]is[/U][/B] a problem, and not just for me (it seems). :wink:

Actually, you are not buying or selling anything. You engaging in a CFD contract (Google it). You agree to be responsible for changes in the value of the underlying asset (in this case the amount of dollar). So if the value lowers you pay your broker the difference and when it rises the brokers pays you the difference. There is no exchange of currency and there is no buyer or seller. At least not in the retail world.

If you were actually buying or selling currency than you are right. When you have EUR in your account and you buy USD than you are buying USD and selling EUR for the exchange rate at the moment pf the sale.

I asked myself the same thing years ago, and this is the answer I found most suitable.

Yeah! I’m aware of all what you said!

About the CFD, I had doubt if the operation that I make in the MT4 is a CFD or not. Now, no more. I like so much of CFD! Excellent business!

EDIT: Actually, I don’t know if the operation in MT4 is a CFD operation or is a operation of OPTION.


About the buy and sell, so, we let’s suppose that you have USD and I have EUR. I want exchange my EUR by USD and you want exchange your USD by EUR and we executed this exchange. So, in this case, I’m the seller and buyer too, because I bought USD from you and I sold my EUR to you. And you are a buyer and seller too, because you sold your USD for me and you bought EUR from me.

Correct!? I and you are buyer and seller simultaneously, is it not true?


Sorry, but I can’t understand this paragraph.

In that paragraph I tried to explain the second part of your last post. I sell EUR to buy USD, so I am an Seller and a Buyer in one. In that case (when I am selling to you) you sell USD and buy EUR and are you a seller and buyer in one to.

But that is a principal that applies to all transactions, not only forex. I wouldn’t break my head about it too much.