Forex: Fortunately When Prices Down, Why Can?

In a business, usually a businessman would certainly benefit if he sold the goods. Note, however, that the advantage of the articles which he had bought at a low price and then sell when prices rise won. While if you sell goods at a price lower than the purchase price, you have definitely got the loss.

Another case with futures trading, however. You will still benefit if prices rise or fall. For those of you who would have never done transactions in futures trading wondering, "How?". The question is a legitimate question, if you do not know the concept of the benefits of futures trading.

There are two directions opportunity to obtain an advantage in futures trading. First, you are going to buy something if it's cheap, buy the so-called Open and then sell when the price rises, often referred to Sell fluid. Secondly, you can sell, and expects that the price reductions, so that they can perform buy Liquid.

Perhaps you are still deserves with the concept of profit in the second to be confused. Why did it happen? The concept is that you first sell when the price is expensive and buy them back when the price drops. You can make a profit from the difference between the sale price and the purchase before.

Then, when it seems the question: "Do I need to buy in advance at the time of high prices and sell them at a low price Is not that the way I'm going to lose" Or "How can I sell stuff when I do not have the goods? ". In this concept, you do not have to worry. There are people who want to give the goods to you.

In foreign exchange transactions, you will take to sell to borrow other people's shoes on sale. However, you must return it with buy liquid from the market. They do this in the hope that the price down if you acquire the loan back. From there you can make a profit.