Forex trading involves trying to predict which currency will rise or fall versus another currency.
The supply and demand for a currency changes due to various economic factors, which drive currency exchange rates up and down.
Example: EUR/USD
If you believe that the US economy will continue to weaken, which is bad for the USD, you would execute a BUY EUR/USD order with the expectation that it will rise versus the USD.
If you believe that the US economy is strong & the euro will weaken against the USD, you would execute a SELL EUR/USD order with the expectation that it will fall versus the USD.
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Similar ideas to Know When to Buy or Sell a Currency Pair
If the market can’t tell you when to sell, then what can? No single formula could possibly apply. “Sell before the interest rates go up” or “sell before the next recession” would be advice worth following, if only we knew when these things would happen, but of course we don’t, and so these mottos...
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