How can I counter trade?

Beginner Questions
1

When I trade EUR/US for example and it goes down, how can I money that way?
Doesn’t I have to trade US/EUR?

Please help.

Thanks
Dirk

2

i don’t quite understand you. you have to buy/sell in order to make money. if what you mean is that you would like to reverse a certain trade, for example you bough EUR/USD then the trend went down, hedging is a way wherein you can put a trade the other way around. other broker offer this, but others dont. you have to close the trade.

3

Hey

I do Eur/Usd then if the trend turns go USD/CHF they are mirror images. I also trade both in the same direction so one will loose while the other will profit. Currently using a demo account to see what happens and how I can miss the big losses.

Good luck
Flippi

4

Hi Dirk,

In this case the EUR is going down in value against the USD, or in otherwords, the USD is gaining in value compared to the EUR.

Usually when a pair is going down…EUR/UDS…one usually places a “sell” order (going short). When you place a sell order for this pair, it means you are both selling EUR and buying USD at the same time. As the pair continues to go down, you will make money.

The opposite it true if the EUR/USD is going up…you’d place a “buy” order (going long) which means you are both buying EUR and selling USD at the same time. As the pair continues to go up, you will make money.

Hope that helps :slight_smile: , but if not then check out this Babypips lesson link for more info : How You Make Money Trading Forex - Pre-School: Forex Basics - Beginner’s Guide to Forex Trading, Free Forex Education, Learn to Trade Forex, Forex Training - BabyPips.com

5

That’s called trading EUR/CHF. Might as well just trade that cross rather than having the spread against you on two legs.