Buying a currency pair means we are buying the Base Currency by paying or selling the quote currency and Selling a currency pair implies that we are paying by the base currency to buy the quote currency.

1. Buy or Sell a Currency
Pair While Trading in
Forex

2. 1. The Basic of Currency Pair
1. Buying a Currency Pair
1. Selling a Currency Pair
1. When you Buy and Sell While Trading Forex?
1. Taking a Position in Forex Market
Index

3.  The ‘basis’ for the buy or sell is the base
currency.
 The traveller first sold the EUR/USD pair – to
do this he paid the base currency (euros) to
get (i.e. to buy) equivalent dollars.
 In the second transaction, he bought the
EUR/USD pair – to do this he bought his euros
back by paying (i.e. selling) the quote
currency, i.e. dollars.
The Basic of Currency Pair

5.  When we buy a currency pair, that means we
are buying the base currency by selling the
Quote currency.
 Buying EUR/USD, it means that we are buying
euro by selling USD.
Buying a Currency Pair

6.  When we sell a currency pair, that means we
are selling the Base Currency by buying the
Quote Currency.
 Selling EUR/USD, it means that we are selling
the euros to buy USD.
Selling a Currency Pair

7.  Buying a currency pair means that we are
buying the Base Currency by paying or selling
the quote currency and Selling a currency pair
implies that we are paying by the base
currency to buy the quote currency.
 The first currency in the currency pair is Base
currency.
Summary:

9.  The value of currencies appreciates or
depreciate against other currencies because
of the gaps in demand and supply.
 From the longer-term perspective, the
demand and supply depend on the health of
the economy.
 If the economy of a country A is performing
better than the economy of country B, then
the currency of country A price will go up and
will be more in demand.
When you Buy and Sell While
Trading Forex?

10.  In shorter-term, the prices move because of
short-term speculative trading.
 You can buy the currency pair if you consider
the base currency will appreciate compared to
quote currency.
 So, we can sell the pair if you think the base
currency will depreciate compared to the
quote currency.

11.  In the Forex market, you can buy a currency
pair when you analyze that the price of the
base currency should go up.
 When the price appreciate, you can sell the
currency pair to earn profits.
 On the other hand, if your analysis says that
the price of base currency should go down,
then you sell your first pair and when the
price goes down.

Taking a Position in Forex
Market

12.  Then you buy it back to cover your previously
sold position to earn your profits.
 When you had sold without having it, you had
just taken it on loan or borrowing from forex
broker and had sold that, and when the price
goes down, you buy the currency pair to close
the trading position.
 You take a position in the Forex market when
you buy or short-sell a pair.

13.  If you buy a pair, you are said to be long pair.
On the other side, if you sell a pair, you said
to be short.
 Note it down that when you already have
bought position and selling it to make a
profit, then it is not short selling but closing
or covering the position.
 Short-selling is when you first sell it without
having any bought position.
Long & Short Positions

14.  The bottom line is that you can make a profit
on both by going Long or Short.

15. Thank You