How does forex actually work ???
Posted: Tue Aug 04, 2009 6:05 am
Hi there
I'll get straight to the point and since this is a newbie thread I am not gonna feel to stupid about asking this...
Ok...I understand that currencies goes up and down and all I need to do is place a buy or a sell...simple? suppose if one leaves it there..but I need to know the inner workings
I'll start by saying what I 'think I know'..A standard lot is one buying 100 000 units of a currency ie: eur/usd 1.4320 meaning one euro equals to 1.4320 dollar I buy a hundred thousand dollars and if it goes up 1.4330 I liquidate my position and take the profits... am I right...
What happens when you sell???? surely you cant sell something you dont 'own'...
This is a bit of a silly question,but would appreciate if someone can explain to me....
I'll get straight to the point and since this is a newbie thread I am not gonna feel to stupid about asking this...
Ok...I understand that currencies goes up and down and all I need to do is place a buy or a sell...simple? suppose if one leaves it there..but I need to know the inner workings
I'll start by saying what I 'think I know'..A standard lot is one buying 100 000 units of a currency ie: eur/usd 1.4320 meaning one euro equals to 1.4320 dollar I buy a hundred thousand dollars and if it goes up 1.4330 I liquidate my position and take the profits... am I right...
What happens when you sell???? surely you cant sell something you dont 'own'...
This is a bit of a silly question,but would appreciate if someone can explain to me....