A Very NewBy Question, Selling Short?
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Thread: A Very NewBy Question, Selling Short?

  1. #1
    essesnchwzr
    Guest
    I geuss this is where to ask so here goes!

    I just can't seem to grasp the concept of making pips on selling short on an opening transaction.
    The idea of buying low and selling high is simple but can someone please explain the concept of opening a trade short and how you gain pips?

    Thank You!!

  2. #2
    essesnchwzr
    Guest
    Quote Originally Posted by ;
    Here is the way it works: you borrow stocks at current (higher) price, sell them immediately, and return (if you depart a brief trade) at lesser price. The price diferrence is your profit.

    Dane
    How do you borrow currency? The only choices that I see in my platform are buy/sell at market, entrance...
    Thanks

  3. #3
    Quote Originally Posted by ;
    I geuss this is where to ask so here goes!

    I just can not appear to grasp the concept of earning pips on selling short on an opening trade.
    The notion of buying low and selling high is really simple but can someone please explain the concept of opening a trade short and the way you profit pips?

    Thank You!!
    YOU wish to buy a 2001 Chevy and are willing to pay $10,000.00 because you think that you can purchase $12,000.00 for this.

    I know ANOTHER GUY who has one for sale for $8,000.00

    FIRST
    I offer you the Car Actually only the Contract for $10,000.00 and promise to provide a 2001 Chevy. Read 100,000 Euros or here

    SECOND
    Then I take your $10,000.00 over to the other man and Buy it from him for $8,000.00, Deliver the Car to you and maintain the $2,000.00 Difference.

    Of course I run the risk of coming at the other man's door only behind five extra men who also wish to buy it and the price has gone up to $12,000.00 in which case I Lose $2,000.00.

    Not exactly how it works but the esscence is precisely the same.
    I sold Shorted 1 Lot 2001 Chevy before I purchased it to Close to the Trade and still have the exact potential profit as Buy first Economy after.

    Clear as Mud?

  4. #4
    Going long--buying one currency and selling the other in the identical time. If price goes up about the currency you buy and then close the position, you make a profit whatever that might be. The initial currency quoted is the currency you are buying. The next currency is the one you are selling.

    Going short--Selling one currency and buying the other in the same time. If price goes down on the currency you sell and then shut your position, you create a profit whatever that may be. The initial currency quoted in the currency you are selling. The next currency is the one you are buying.

    Moving short is selling one currency and buying the other. Going extended is buying one currency and selling the other.

  5. #5
    essesnchwzr
    Guest
    OK, So I am a little dumb, no, I still do not get it thanks for all of the replys.
    Let me put my question another way, here is a replica of a sign service from the other site:

    45.
    OPEN EUR/CHF SHORT @ 1.5530 (CLOSED 1.5510)
    1st Target = 1.5490
    2nd Target = Allow it to run until sign comes.
    Stop Loss = ur own SL or await sign to close

    If I start brief at 1.5530 and also my initial goal is 1.5490, that is a reduction of 40 pips, is your plan to market these again after?

    How would I create this transaction, could I put in an entrance limiy buy for 1.5530??

  6. #6
    Keep asking til you receive it. I felt so stupid when I began as well. Do not worry, we have all been there. You won't find out unless you ask. Any time you sell(go short) you want price to go down. Cause if you buy, you are buying at a lower price than you offered. If you offered a watch to a buddy for $10 and 30 minutes after, that buddy didnt want it, you say, I will buy it back for $8. Well, your friend gave you $10 and you gave him back $8 you make $10. Should you sell EURCHF @ 1.5530 and your initial goal is 1.5490, you are buying it back 40 pips more economical. The same as the watch. Yousell it and buy it back.

  7. #7
    ToTobesS
    Guest
    You do Not get The Big Picture.

    To begin with, forget the conventional buying-selling notion since you found in the regional hardware store.

    Secondly, entry and exits are always the reverse. As in your case, your entry is SHORT @ 1.5530 along with the 1st TARGETed depart is 1.5490; significance: you SELL @ 1.5530 and then BUY @ 1.5490. (This is BUY @ 1.5490 and SELL @ 1.5530 in reverse.) So you profited 40 pips.

    In your case, you forget that once you sell, you need to buy to complete the cycle, or trade, or whatever it's called.

    If you put entry limit buy @ 1.5530, then you put take profit @ 1.5490.

  8. #8
    Nesrnost
    Guest
    Ignore the previous paragraph, my mistake.

    Your sign said SHORT, which means that you should not put entry limitation buy, but entrance limit SELL. Then you put take profit @ 1.5490.

  9. #9
    Quote Originally Posted by ;
    OK, So I am a little dense, no, I still do not get it thanks for all the replys.
    Allow me to put my question another way, here is a copy of a sign service from the other website:

    45.
    OPEN EUR/CHF SHORT @ 1.5530 (CLOSED 1.5510)
    1st Goal = 1.5490
    2nd Goal = Allow it to run till sign comes.
    Stop Loss = ur very own SL or wait for sign to shut

    If I start short at 1.5530 and my initial goal is 1.5490, that is a reduction of 40 pips, is your plan to market these again after?

    How would I create this transaction, would I put in an entrance limiy buy for 1.5530??
    Set in an entrance limitation SELL to get 1.5530
    Subsequently Afterwards BUY it @ 1.5490.

    So You Bought @ 1.5490 and Sold @ 1.5530 to get a Profit of dah dah 40 Pips.

    The only thig you did different was you Sold First and Bought Second however you still Buy Low Sell High.

  10. #10
    essesnchwzr
    Guest
    Quote Originally Posted by ;
    put in an entrance limit SELL to get 1.5530
    Then Afterwards BUY it @ 1.5490.

    So You Allergic @ 1.5490 and Sold @ 1.5530 to get a Profit of dah dah 40 Pips.

    The only thig you did different was you Sold First and Bought Second however you still Buy Low Sell High.
    All you men have been fantastic!! I have been pouring over my ebooks and forums daily, I'm grateful that I asked, NOW I Get IT

    Thank You!

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