Hi what do you mean by ''going short ''

View previous topic View next topic Go down

Which is more preferable:Technical Analysis or Fundamentals

66% 66% 
[ 2 ]
33% 33% 
[ 1 ]
 
Total Votes : 3

Hi what do you mean by ''going short ''

Post by festacboy on Sun Jan 27, 2008 3:05 pm

I'm new to forex and most of the terms are pretty much unfamiliar to me.I hope to get more information on this forum on how to trade the forex market. please can anyone tell me what it means to go short?
Thanks

festacboy

Gender:MaleTaurusRooster
Posts : 2
Joined : 14 Jan 2008
Age : 27
Location : lagos,nigeria

Back to top Go down

Re: Hi what do you mean by ''going short ''

Post by Stalion on Tue Jan 29, 2008 7:37 am

Helloo, Festacboy, Smile
Going short refers to an investment position that benefits from a decline in market price of an asset or security.One of the distinct advantage forex have over equity trading is the ability to sell currencies with virtually no limitations. In the U.S stock market,it is much more difficult to go short due to the zero uptick rule, which prevents investors from shorting a stock unless the last immediate trade was equal or lower than the price of the short sale.
Actually, unlike the equity market, profit potential exists in the forex market regardless of whether a trader is long or short, or which way the market is moving. Stocks are more often considered a ''buyers'' market, since market rules and regulations are structured to discourage short selling(selling shares one does not own). Since currency trading always involves buying one currency and selling another, there's no strict bias to the market. This means the trader has an equal potential to profit in a rising Like a Star @ heaven , as well, as a falling market.
Hope this helps

Stalion

Gender:Male
Posts : 176
Joined : 23 Dec 2007
Location : Nigeria

Back to top Go down

Re: Hi what do you mean by ''going short ''

Post by fashanu on Wed Jan 30, 2008 11:58 am

going short means sell,going long means buy

fashanu

Gender:MaleVirgoRooster
Posts : 3
Joined : 14 Jan 2008
Age : 26
Location : ibadan, nigeria

Back to top Go down

View previous topic View next topic Back to top


Permissions of this forum:

You cannot reply to topics in this forum