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For instance, if you shorted the eur/usd pair, the broker will match this with a long eur/usd trade... Why?
For instance, if you shorted the eur/usd pair, the broker will match this with a long eur/usd trade.... Why?
about 1 year ago
Best Answer - Chosen by Voters
Understand that in order for you to buy (long) someone must sell, meaning someone must be short. The same goes vice-versa? Remember brokers are in the business of providing liquidity! Good Luck!
about 1 year ago
Answers (1)
Brokers only act as a middleman in forex transactions, which means that if someone shorts a particular pair, they have to find someone who is willing to buy that is willing to buy that pair.
about 1 year ago
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