Trade Currency and Price Currency
When you trade, you will always trade a combination of two currencies. For example, you will buy US dollars and sell Japanese yen. Or buy the Euro and sell Japanese yen, or any other combination of dozens of widely traded currencies. But there is always a long (bought) and a short (sold) side to a trade, which means that you are speculating on the prospect of one of the currencies strengthening and one of them weakening. The trade currency is normally, but not always, the currency with the highest value. When trading US dollars against Japanese yen, the normal way to trade is buying or selling a fixed amount of US dollars, i.e. USD1,000,000. (more…)
Written by admin with comments disabled.
Read more articles on trade and currency and Forex Trading.







Loading ...