My name is Sam Mohamud, I’m new in trading, there are alot of question in my mind, but the one I don’t really understand is this.
1- Forexample , I Buy EUR/USD, when I click buy it means I bought EUR, and sold USD, when I click close in my mt4 it means I bough USD and sold EUR, in exchange buy money hold it then sell it,
but When I am holding EUR, where exactly am I holding it, does the broker holding for me, is it in my account?
Hi Sam -
When we trade currency, there is no buying or selling of anything going on. We simply place a bet with the broker that the exchange rate between two currencies will rise or fall. The broker does not buy or sell any currency when you place a trade.
I’m sorry if it now sounds like we are involved in gambling.
Best wishes.