Greetings,
I have a silly question to ask, what is the difference between BUY/SELL orders and close positions? Whenever I long a position and sell it, I expect that the order be fullfilled immediately and whatever profits made be credited into my account. However, after giving out and completing the order, I found my position continue to “move”, hence I have to close it from the summary. May I know what’s happening here, or there is some misunderstanding from my side.
Excuse me, please kindly close this topic, solved :o
I guess it is a noob question, but I think with forex it is common misunderstanding. When I started my demo account a few days ago I wasn’t sure either. For anyone brand spanking new and a bit confused…
When you buy a pair you simultaneously buying and selling currency. You are buying one currency with another or selling one currency and buying it with another.
EUR/USD + buy button you are going long (hoping it goes up) + close = profit
EUR/USD + sell button you are going short (hoping it goes down) +close = profit
Long/Buy = buy pair…pair goes up you make money, pair goes down you lose money…then you close and either take profit, lose money or break even.
Short/sell = buy pair…pair goes down you make money, pair goes up you lose money…then you close and either take profit, lose money or break even.
To go long you don’t have to buy and then sell the same pair. You just buy and close.
To go short you do not have to buy, sell and buy back. You just sell and close when you hit profit.
This has been my ultra noob tip of the day.
I have a silly question to ask, what is the difference between BUY/SELL orders and close positions?
I see you found your answer, plus The Phoenix gave a great answer as well. I just want to say that this is NOT a silly question. When I first started I remember having to pause before a demo trade and double check to make sure I was opening the trade in the right direction! It really is confusing if you’ve never traded stocks or anything else before.