For the example: "EUR/USD = 1.7500"
EUR is the base currency, and USD is the quote currency
If you buy EUR/USD this means that you are buying the base currency (buying EUR) and simultaneously selling the quote currency (USD). (“buying euros with dollars”). (Entering the market long EUR/USD)
If you sell EUR/USD this means that you are selling the base currency (selling EUR) and simultaneously buying the quote currency (USD). (“buying dollars with euros”). (Entering the market short EUR/USD)
Is this correct so far? The mental block I have is: how would I enter the market “short” EUR/USD in this case, unless I had a bunch of euros already?
Thanks for any insight…