I dont know why, but I have some major problems with some definitions. What exactly does
enter short and enter long mean? And what does exit mean?
I know short means sell and long means buy, but then what does exit mean? does exit mean sell? wouldnt that be short? thanks
Exit means to close out your position.
If you were long…you would sell to close out your position. If you were short, you would buy to close the position out.
Investopedia is a good website for many definitions.
Ok, so when you enter a trade you either sell the currency pair, or buy the currency pair. When you exit you do the exact opposite of what you did to enter the trade, so if you sold the currency pair, to exit you would buy it back, and if you bought the currecy pair, you would sell it back. So when entering say you short the pair, which means you sell it in hopes that it will go down, so you can buy it back at a lower price and make money on it. In order to get out, you must buy back the pair that you sold. The same goes for going long on the pair. Hope that helps, ask another question on it, if you need to.
Thanks that actually helped a lot.