Forex Investing:Selling Short vs…well uh, ..just “regular selling”!
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Article Content:
Regular selling is when you’ve bought first, expecting the pair to rise…and then you sell later on to close out the trade and “lock in” those profits from the gain produced by the upward trend on the chart.
Selling short is when you are going into the market by INITIATING a sell order FIRST,expecting the pair to trend downward and thus gain money in your account equity that way. As the pair falls, your account appreciates in value. Then when you think the downturn is over, you can close out the “short sell” by buying back to cover. This is simply done by clicking on the buy quote and placing a buy for the exact number of lots that you’d shorted.
Just as a sell closes out a regular buy order….so does a buy order close out the sell (sell short) order. So when you initiate a sell to get into the trade (to enter the trade)…you are shorting (selling short).

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