For the concept of profit if the price rises may not need to be explained because it is a reasonable concept, we buy things when they are cheap (Open to Buy) and hope the price goes up and sell (Sell Liquid), can profit from the difference between the sale price and purchase price.
Well what if the price drops? How to get the benefits???
Background Market Forex Market is very large, the international market globally
and transactions occur quickly.
Concept to profit when prices fall are:
FIRST TIME SALE PRICE EXPENSIVE
THEN
BUY BACK WHEN PRICE DOWN.
How can I sell if I have to buy?
YES WE Can, because there are people who want to lend it to you!
A simple example is the consignment in the world trade system, in which we loaned by the Supplier for the sale of goods when we do not directly pay for the time we receive the goods. After the goods were sold to our customers (of course more expensive than the purchase price to the supplier), then we pay back our Supplier with a cheaper price than the selling price to our customers.
Well what if the price drops? How to get the benefits???
Background Market Forex Market is very large, the international market globally
and transactions occur quickly.
Concept to profit when prices fall are:
FIRST TIME SALE PRICE EXPENSIVE
THEN
BUY BACK WHEN PRICE DOWN.
How can I sell if I have to buy?
YES WE Can, because there are people who want to lend it to you!
A simple example is the consignment in the world trade system, in which we loaned by the Supplier for the sale of goods when we do not directly pay for the time we receive the goods. After the goods were sold to our customers (of course more expensive than the purchase price to the supplier), then we pay back our Supplier with a cheaper price than the selling price to our customers.
Well so does the Forex Trading, when you open a Sell position, then you borrow another person to sell a position and you have to return it by buying from the market again, of course, the hope when we buy to repay the loan, it is cheaper (down) than when we selling / borrowing (Sell).
This process is done by the system through the exchange, so we do not know from whom we borrow / open sell position and from whom we buy / cover the short positions coupled with a global Forex Market then there's always those who sell or buy at the time.
Well this is the concept of Sell, Sell open position (sell) and expect prices to go down so that we can cover (Buy Liquid) with a lower price. The advantage gained from the difference in the selling price and purchase price. But if the price will go up beyond the purchase price (Open to Buy), then you lose
Tag :
money
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