Resolved Question
Why do I still earn profit even the exchange rate is falling?
over 2 years ago
Best Answer - Chosen by Voters
That probably means that you are short on the currency pair you are trading. Here's an example: You sell EUR and buy USD.... meaning you Short the EUR/USD pair... what you want to happen is for the exchange rate to fall. What happens is the value of USD relative to EUR increases! This means that once you sell back the USD you initially bought (and buy back the EUR you initially sold), you will earn profit based on the difference!
over 2 years ago
Answers (1)
It depends on your position. But as I see it, you need to know the basics first. Explaining the role of exchange rate will just give you a head ache for now. Read up!
over 2 years ago
* You must be logged in to add comments. Sign In or Join Askpips.com.
Open Questions in Beginner
Resolved Questions in Beginner
- Should I go live? Please give me your advice on this.
- For a newbie, which currency pair do you think is the best to start with?
- Which do you think is better? Daytrading or Position Trading?
- For a newbie like me, is $1000 a good starting deposit in forex?
- I work full time and I'm wondering if signal providers really work. Has anybody had any experience with them?
* You must be logged in to add comments. Sign In or Join Askpips.com.