Friday, February 3, 2012

Two Ways Opportunity

To the concept of profit if the price rises may not need to explain because it is a reasonable concept, we buy something when it's cheap (Open Buy) and hope the price goes up then sell (Sell Liquid), can profit from the difference between the selling price of the purchase price. 

So what if prices go down? 

How to get the benefits? 

Background of Market Forex Market is very large, which is the international market of the world and transactions occur quickly. 

Concept to profit when prices fall are: 
 
"SELL EXPENSIVE PRICE FIRST TIME THEN BUY BACK THE PRICE DOWN"

How can I sell if I have not bought? Yes, because there are people who want to lend it to you! 

A simple example is the Consignment in the world trade system, which lent us the goods by the Supplier for the sale and we do not directly pay when we receive the goods. After the goods are sold to our customers (of course more expensive than the purchase price to the supplier), then we pay it back at our supplier at prices cheaper than the selling price to our customers. 

Well in Forex Trading as well, when you open a Sell position, then you borrow the position of another person for sale and you must return it by buying from the market again, of course, when we bought hoping to repay the loan, the price is cheaper (down) than when we sell / borrow (Sell). This process is performed by the system through the stock, so we do not know from whom we borrow / open sell position and from whom we buy / closing Sell position is coupled with the worldwide Forex Market is always something they are selling or buying at that time. Well this is the concept of Sell, Sell opened position (sell) and expect the price down so that we can cover (Buy Liquid) with a lower price. The advantage gained from the difference between the selling price of the purchase price. But if the price rises to exceed the purchase price (Open Buy), then you lose.

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