The long and short position
As mentioned earlier, Alpha-Forex makes it possible to conduct profitable operations, regardless of market movement up or down. You can open positions for buying and selling. In the first case, the customer seeks to buy cheap and sell expensive (long position) in the second, on the contrary - in the beginning to sell more, and then buy a cheaper (short position).
Example:
The client buys a pair EURUSD, predicting growth of the euro against the dollar. Thus, the client actually gets euros for dollars (as in the exchanger acquires dollars for rubles). As soon as the euro rises enough, the client holds back the transaction, that is, sell Euros back to dollars, at a profit.
When the sales transaction, ie with "short" position, the client is selling a pair EURUSD. In fact, it is in those moments when the euro against the dollar begins to fall. The client takes the broker, for example, 100,000 Euros and selling them for dollars. When the euro is lowered enough, you need to have fewer dollars to buy euros from the market and return to the broker due to this difference and formed the client profit from short positions.
At the time of opening the position for a trader does not matter which currency is the currency pair in the base. If his forecast is planned to increase prices (on schedule), you should open a long position (buy). If he is confident in the future price moves down the chart, he should take a short position (sell). Type of currency quotes (direct or reverse) is meaningful only if the trader intends to evaluate the impact of any news on the price of a given currency pair. For example, when the news came out positive for the U.S. economy, the USDCHF chart will go up (the dollar in the numerator), and the timetable for GBPUSD - down (the dollar in the denominator).
