When you trade a stock or make a position in forex trading, you would probably think that you can only bet to make a stock value higher and then take your money out hoping that your profited on a stock's gain. Well, did you even know that you could make a position on a stock or currency pair on betting that the price will go down?
Yes it is possible to bet on a price decline. This is called shorting. It can be done with both stock trading and currency trading. Today we will focus of course on currency trading.
How did you expect for a currency pair value to go down in the first place? It wouldn't be able to if no one was shorting it of course!
This is the process of shorting a currency. Of course on your trading platform, it is as easy as clicking a button.
1. First of all, the process of shorting begins with borrowing a lot of a currency pair from a broker, and selling it.
2. You hold the currency pair, until you get to a desired profit point. Now remember, your desired profit point is on a decline and not the other way as if you were trading a long position.
3. The process of closing the position, would be buying back the lot of your currency pair and then returning the borrowed lot to your broker. The left over proceeds are your profit!
yep, that is all to it when it comes to shorting currency.
Thomas Howell
Reuters - ImClone Systems Inc is expected to announce later on Monday that it is continuing talks to sell itself to a major pharmaceutical concern for a price in the range of $6.1 billion, the Wall Street Journal said, citing people familiar with the matter.Ralcorp S Q3 Profit Rises But Misses Analysts Estimates St Louis Post
One Financial One Financial The One Financial Cfd Trading
Stock Trading Books
0 comments:
Post a Comment