Can you sell currency pair without buying first?

Beginner Questions
1

Hi guys,

i am newbie, i want to know must we buy the currency pair then sell it or you can sell the currency pair without buying it?

And also do you earn profit by only selling it right?

thank you

2

have you been to babyypips school yet ?

You’re just confusing yourself

EDIT : My Full answer has been abbreviated to avoid confusion

@_bob
thanks for the heads up mate
i guess sometimes i word things in certain ways and i think AT THE TIME it might resonate with the OP or person asking,
sometimes it doesn’t turn out as expected

i guess this was one of those times. so i’ll direct them to the school just to be on the safe side

be cool mate
and no worries… no offense take

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3

Sureshhey.
As a retail trader, you never actually buy nor sell anything in the way we normally understand this.

When you enter a trade, let’s say EurUsd, by clicking the ‘buy’ button, you are in effect betting that the Euro will go up in value against the dollar.
If it does, you close the trade and profit from the difference.
The reverse happens if you open a trade by clicking “sell”, this time you benefit if the Euro depreciates against the dollar.

So, you select “buy” or “sell” depending which way you think price will go, its nothing more than a bet, so you can “sell” something you’ve never owned, just remember to close the trade later by clicking “buy”.

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4

@anon81929759, bro you know you’re wrong here m8. We’re trading CDF’s. The only thing we do is buy is a long contract or a short contract. We never sell anything cause our contract is with our bucket shop broker (which is not a bad thing). I’ll let you expand on your response as I’m sure you’ll understand where I’m coming from.

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5

@_bob

firstly… CFD’s Not CDF’s :stuck_out_tongue: hehe

now , that aside
yeah i know what you’re saying and yes ok fair enough
i was merely trying to simplify it for him

he’s overcomplicating it

ok, i’ll abbreviate my answer

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6

lol please excuse a bout of dyslexia bro

7

So I used the search button - something the OP @Sureshhey needs to learn to do - because we’ve been down this road before.

Things need to click bro otherwise let it go. This game is not for you.

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8

Actually this is probably the one time I wouldn’t recommend school.

9

Mate, mate… Not Good enough Mate, LOL
Buuuutt i suppose exceptions can be made,
i guess i can let it slide JUST THIS ONCE hehe
on the condition that you excuse my wall of text :stuck_out_tongue:
You’re Excused.

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10

I agree
(ok, i guess i have to type something because my response was less than 20 charachters hehe)

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11

well this is a good point
@_bob if i had my way i would recommend most of these people to leave the game,
i mean , some of the things you hear… My god huh

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12

If you are literally going down to the bank and exchanging one currency for another, then yes you have to buy it. And you can only make a profit by selling it back, assuming you want the original currency form back in your pocket.

But that is not how foreign exchange works online.

13

Whether you are buying or selling, one currency you are buying and another currency you are selling. For example when you go Long in EURUSD, you are buying Euro and when you are going Short, you are buying USD. It’s actually exchanging. And we make profit or loss by spread gap.

14

This is totally wrong.

The trader who is long EUR/USD is not buying Euros, no Euros change hands. This trade is a bet that the value of the Euro will rise against the US Dollar.

The firms involved commonly refer to themselves as brokers, as if they handle currency, passing it from sellers to buyers like through a warehouse. In reality, they are actually betting shops or bookmakers but hesitate to call themselves this owing to these terms’ links with the idea of gambling and betting.

If you’re uncomfortable with the idea of betting and gambling, leave forex trading.

And the firm that offers this transaction makes a profit from the spread, not the trader. The trader pays the spread to the firm.

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15

Sorry, but this is so wrong. Read Tommor’s post if you don’t understand mine

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16

Hello; please read the BabyPips School very carefully; it will help you a lot to learn Forex.

17

Have you read the school notes on this subject. They are so far from the truth it aint funny and needs revising urgently

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18

@Peter_Siddle
Mate, babypips school can be beneficial ok
but it needs to be taken with a grain of salt… ok

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19

There are different options for trader he can buy and sell at the same time it is calle hedging . You put order on same market position one trade is for sell other is for buy in this way you can collect profit in any one of the trades if market is moving. Trader can only sell in any position it is up to him what he does for suitable market conditions.

20

Not trying to be rude to you, Ferdous, but there isn’t an easier way to say this: that’s just totally wrong (and honestly it isn’t helpful to the forum or its members to be presenting such misinformation as “advice” when people ask questions). Sorry. :angry:

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