Bid price: The price at which currency can be sold.
Price Request: The price at which you can buy currency.
As for forex trading, short and long trade are possible, but make sure you always have a good understanding of forex transactions before you start trading. In the end, forex trading can be a little complicated to start, especially when mixing short- and long-term transactions.
The buy and sell position in forex: Long and Short TradeThe Long Trade (buy)
To put it simply, long trade is a term commonly used for purchasing. Therefore, if the trader expects the asset price to rise, it will last long.
Suppose you maintained a long position on the basic instrument you purchased. For example, USD/JPY. This means that USD is expected to increase in value compared to JPY.
Short Trade (selling)
If forex traders expect asset prices to fall, it will be insufficient. This means making a profit by purchasing at a lower value. To do this, you just need to place a sale order.
The current exchange rate of foreign exchange pairs is always based on market power. This will be changed in seconds. There is always a slight difference in price as we also need to consider the spread.
For example, if you exchange 1 USD for 17 ZAR, the selling and purchasing prices offered by foreign exchange brokers will be both of those figures. The most remarkable pair of currencies linked to supply and demand is considered to be the most flexible in the foreign exchange market. The supply and demand aspects are attributed to the investment of importers, exporters, banks and traders. This is the home of a $5 trillion daily trading position in the forex sector!
