Excerpt from: Forex Training
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| November 17, 2008 | | Currency trading in pairs | One of the features of forex trading is that someone is always making money. This is due to the nature of currency trading in pairs.
Because of the way FX trading is executed, there is always someone making money, since there is always the other side to the pair. If the euro is sinking in forex trading, it means that the U.S. dollar is gaining. So, even if you wrongly favored the euro, someone else is benefitting from favoring the U.S. dollar.
The currency trading in pairs also allows you to short AND favor the same currency simultaneously. You can favor the U.S. dollar against the euro, and in another transaction short the U.S. dollar against the Japanese yen.
| Topic Tags: currency pairs, currency trading, euro forex trading, forex trading, FX trading, making money forex, U.S. dollar | |
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