Hi everyone,
Sorry for this silly question but I need to understand this.
I know in stocks when I buy a stock someone is selling it to me, and when I sell someone is buying it from me.
Is that the case also in the currency market ?
I ask this because I saw some trading material saying about a sentimate indexes at one period that “everyone is buying”,
isnt there someone selling for every buy ?
Thanks in advance
Sharon Guy
In all markets all the time there must be someone selling in order for someone else to go long.
Funny, I was just thinking of this. Newton’s law of motion, for every action there is an equal and opposite reaction.
Talon’s law of pipmotion. for every looser there is a winner…
So how do you get on the right side of the equation? 
You can have two winners, currency growth is like economic growth, economic growth means that on the whole everyone wins, because there’s more of it, same with currency growth, there’s just more of it to go round - inflation, so OK then you can say but you’re losing due to inflation, and then there’s the point it’s just one big merry-go-round.
You cannot have two winners in forex trading because you never actually exchange the currency and there is no ownership. All you’re doing is making an agreement to do an exchange in the future, but that agreement is rolled forward and never executed. As such one side must be a winner and the other the loser, unless the rate holds exactly still - in which case both probably lose because of the spread.
This is what I like - a healthy debate.
You can have two winners in Forex - say we both put a carry trade on at the time and then 24 hours at the same time we sell at the same time and the same price again, we will both benefit from the interest on both of the trades yes? We both win yes? - the sum of the total currency will have grown by the interest amount.
No. Total currency will not have risen because what you are paid comes from someone else.
If you put on a carry trade of say long AUD/USD then someone must be on the other side of it short AUD/USD. Taking out any price movement at all, and no spread cost, there is still an interest transfer. You are in a net positive carry while the short on the other side is in a net negative carry, effectively paying you the interest you earn.
Do you actually know this stuff? Or is it your opinion? to be honest with you I don’t have either!
All I know is that I’m on the right side at last, but I think we’d be agreed that it’s a bit of a merry-go-round.
Sure you can!
Winner 1 - the winning trader
Winner 2 - the broker of the losing trader
Winner 3 - the broker of the winning trader
See, forex is great - 3 winners and just one loser. Let’s just make sure to not be the loser. :D;)
Well, considering the fact that Rhodytrader (John Forman) is a published author in this field, I’d go out on a limb and say that he knows what he’s talking about…
Cracker…
So we were both wrong, I guess he doesn’t know everything 
Yes there is always a winner and a loser, but not every loser or winner is a trader.
In order to invest, trade, travel, etc… between countries, people has to enter to the forex market, so we can take advantage of it, and a lot of them don’t really care because is not their business, they just want to invest on other country, travel, etc… that’s a big difference against other markets like stocks.
Kathy Lien said something like this in his analysis “5 things that move the forex market”