Please what is “Buy and Sell” in Forex trading different from the literal “Buy and Sell”?
Let’s say the price of EUR/USD is 1.2040. why would anybody want to buy at 1.2095 and not below 1.2040 instead?
In private retail forex trading we are not buying or selling anything. So if you buy EUR/USD, you will never receive any EUR and you will never have to sell any USD to pay for them. But if you do buy EUR/USD and the exchange rate rises, it acts for you as it would for an owner of EUR, that is, you make more money the higher the price rises.
There are two trading styles for buying EUR/USD but only one reason.
Style 1 - buy now because the price is lower than it used to be (price is not rising yet but it will be soon)
Style 2 - buy now because the price is higher than it used to be (price is already rising and is going to continue rising further)
Both make sense.
The only reason to “buy” EUR/USD is because you believe the price is going to rise.
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Thanks tummor, i’m enlightened.
buy and sell this is the term used for currency on the front.