We buy and sell simultaneously in the Currency Markets


In currencies, the purchase of one currency involves the simultaneous sale of another currency. This is  the exchange in foreign exchange hence the word F O R E X. To put it another way, if you`re looking for the dollar to go higher, the question is “Higher against what?” The answer  has to be another currency. In relative terms, if the dollar goes up against another currency, it also means that the other currency has gone down against the dollar. To think of it in stock market terms, when you buy a stock,  you`re selling cash, and when you sell a stock, you`re buying cash.


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