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What is Buy and Sell in Forex Market??

In normal human life and in normal market buy’s meaning is to buy something with money exchange. You have to pay money if you want to buy something from anyone in the normal market but in Forex Trading market buy have different meaning.

Buy :-

It means to buy a currency pair, in this process we are buying the base currency by selling the quote currency.  By buying EUR/USD means we are buying EURO and selling USD.


When we sell a currency pairs it means we are selling the base currency by buying the quote currency. By selling EUR/USD means we are selling EURO and buying USD.

What s the Base Currency and Quote Currency?

Example:-   USD/EUR= 1:400

In this currency pair USD is the Base currency and EUR is the Quote currency. In simple words in currency pairs first currency will be the base currency and second currency will be the quote currency.

Analyze the forex and  you can buy a currency pair when you found that the price of the base currency should go up. When the price appreciate, you can sell the currency pair to earn your profits. 

On the other hand, if your analysis says that the price of the base currency should go down, then you sell the pair first (yes, you do not own it as yet) and when the price go down. then you buy it back to cover your already sold position to earn your profits.

Open your live trading account with BullsEye Markets now and trade with Best ECN Forex Broker.


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