Buying Versus Selling Currency Page

often occurs during political instability, "safe haven" flows (selling risky currencies to buy Gold or USD), or when a central bank prints more money (inflation).

The price at which the market will sell to you (always higher).The gap between them is the "Spread." This is the friction of the market—the "tax" you pay to the house for the privilege of trading. 4. The Macro View buying versus selling currency

usually happens when a country raises interest rates (attracting investors) or shows strong GDP growth. The Macro View usually happens when a country

The second currency (USD) is what you use to settle the bill.If you think the Euro will get stronger or the Dollar will get weaker, you Buy (Go Long). If you think the opposite, you Sell (Go Short). 2. The Psychology of the Trade 2. The Psychology of the Trade