I just wanna know the meaning of going short… i know that means SELL… but is it sellin after buying…?
& if it’s not … which i know it will be… how does that work… to SELL… then Buy… sell what & buy what…?!!
i work on the GPB/USD pair… how come that i make profit even when the Rate goes down …?!!
help me here plz… !!!
you must be new to forex go and read more about interest rates effects on market and see I’ll give u an example about interest rate if you have bank A and bank B if u buy from bank A they I’ll give u 5% interest and if you buy from bank B they give u 2% interest which one u’ll choose ? i think it’s now pretty easy for you to figure out why you make profit on GPB/usd
It is a convention that comes from stock markets. If you are long the GU pair you have bought the pound and sold the dollar and vice versa for a short. But why on earth would you be thinking of trading if you know so little. Go to babypips preschool and start learning
[B]Laymen Term Example:[/B]
Brokers are basically Auctioneers, that are laying something on a Table, lets say your Grandfather’s Watch is the Instrument. As the Owner of that Watch, You want xxx Dollars for it. Auctioneers screams that amount to all Traders in the room. Auctioneer places a line on each side of that watch and says to the Room, this side means current value is Overvalued I[/I] and This side is for Undervalued[I](Long = Buy). [/I]
Auctioneer dings the Starting Bell. Traders step up pay the Auctioneer to place money on either side of that Watch on the Table, when they feel the Value is either Over or Under and lock in the Current Value, when cash hits the table. Hoping to be right, on which side they place their Cash and also getting the best Value on the Watch. More Cash on Undervalued side, moves Value in that Direction, because it is becoming more Valuable than when you first placed it on the Table.
If no more Traders place bets on the table, Auctioneer will quickly, Add Buyers (longs) divided by the bets on that side of the table. And subtract from the Sellers (shorts) divided by the bets on that side of the table and scream at the room the current Value of the Watch. Auctioneer will adjust Trader’s stack of cash on each side of that line, as the Value swings away from the Value of Their original bet. It’s up the the Trader to decide when he has had enough and walk up and take his stack of cash off the table, or have the opposite side of the line take it for him. ;o)
If there never existed such a thing as Shorts. Brokerage Houses would have to take a position on the table on one side of that line. And have to keep up with the onslaught of Buyers. Which then it is just a matter of time if enough people stack cash against the Brokerage House. That Brokerage House will dwiddle their stack and have to fold his hand. That is some seriously Deep Pockets, to even have attempted that.
Brokers pocket Money, regardless which side of the line, the traders drop the cash. If you are going to place money on the Table, You are going to Pay the Piper (Broker). ;o) Technically, if the Sellers absorb 100% of the Buyers the Price will be Zero, which means the Watch is worthless, which means all on the side of Undervalue (long) are crying on each others shoulder. Some will speculate how the Shorts sent that pretty girl over to distract you and how if it wasn’t for her you would have clearly seen the indication of the Value decreasing. Others merely point to a glich that only must happen in 100 years in their Top Secret Holy Grail Watch indicator.
[B][U]My personal advice: is just to shoot a Bird across the Table at the Shorts!! Possibly flip the table over if the auctioneer isn’t looking. But that is just me. ;o) [/U][/B]
From that point, the sellers will put coffee and candy on the buyers side of the table, might even polish up that side of the table to make it look real pretty. Possibly put some pictures of a Rolex watch with pictures of money all across the Floor in front of the table on the buyers side, they can get real petty at times. From this point it will be at a standoff, until a Buyer feels like it is time to get out of the corner crying about, how much the sellers just took from him. and how he is being abused by a Bully Shorter, how The Bully Shorter must be using his Daddy’s Money. After all the Sellers have their money off the table and left the Building with smiles and went surfing in Hawaii with High Dollar Escorts, off all the Buyers hard earned money. Buyers see the opporunity and Value in the Watch with no Sellers at the table. Brokedown Buyer runs outside Holds up a sign asking for spare change as the Sellers go by in their Ferraris. The broke down Buyer, then runs back inside with the spare pennies, that the Sellers chunked at him as they drove by. Place them on table getting decent Buy, for the Value of that Watch. He ripes down the pictures of a Rolex and money off the floor and puts up pictures of a sundial and possible throws dirt on top of the watch. hoping a short comes by and takes a look at the dirty watch and see it overvalued. The buyer will let the shorts stack against him as much as his cash will allow. Then in one quick second he leans over and blows the dirt off the watch, the shorts freak out and try to dump it. But it is too late the true value of the watch is apparent. The shorts just got toasted. Starting the thing over again. Which the bidding is never really over until the owner of the Watch yanks it from the table, or the Auctioneer throws it from the table, cause no one is interested in the dang watch. ;o)
Creating the Neverending Battle between Bears and Bulls. With the Brokerage Houses raping everyone that dare steps to the Table to place the Bet. ;o)
So basically, Be careful how you say Short when you actually mean Shortterm, Two totally Different Things in the Financial World. ;o)
[U]Not to be disrespectful[/U], but you should really get your hands on alot of Books that deal with the Basics of how a Financial Market works. And go through Babypips School [U]ALOT[/U]!! Your asking some very Basic Questions that should be totally understood, before entering a “Currency” Market. IMO those answers should have already been known before you ever left Equities, where the average person gets their start. Wish you the best…
Yes you need some serious SCHOOLING…BABYPIPS
Everything you need to know and then some
Now now Mr. MakeMoneyOrDie, be nice.
It’s a Cruel world out there MR NINJA
just trying to point the young turtle to the sea before the seagulls get him
go to babypips school start in pre school all your questions will be answered there my child…
No, it’s not selling after buying.
It works a bit differently for forex than other markets, but here’s the simple answer. Going short means taking a position in which you benefit from a downward movement in prices. That means you sell to create a net negative position, then buy back later, hopefully at a lower price.