Short Selling Strategy in Forex Trade

One of the advantages of forex trading is the existence of investment leverage or two way opportunity, the opportunity to earn profits in both rising prices and conditions are in decline. In conditions of rising prices, the strategy used is the conventional trade, which formerly bought cheaply and then sell it. This is done on the real sector transactions. In forex trading, if the conditions are declining prices, investors can do short selling strategy is to do more first-sale prices are still high with new buy when prices are low / declining. In forex investing, short selling becomes mandatory and job knowledge required as well. Because, precisely this condition that often occurs. Therefore, investors should know the ins and outs of this short selling.

What and how to trade forex with short selling it? In principle, short selling is selling a product or service that is not owned by the seller. Why can happen, someone who does not have an item or service for sale can make the sale? What if the buyer requires the seller to immediately deliver the goods or services? This is where the difference in investing in real sector with invest in forex trading.

In the real sectors such goods market, traders goats, could not sell the goat did not have to buyers. The reason? First, of course, buyers want to see the first form of a goat that will be bought, whether fat, healthy, skinny or what? Second, even if the seller managed to get a goat that would sell, he must buy it first. Third, in the goods market trading occurs on a spot or cash, meaning that payment is made once the transaction.