Selling CFDs and currency pairs is very similar. By placing a sell or buy order for a currency pair or CFD, with the broker, according to which the broker is call the seller and the trader is the buyer, and both undertake to transfer to each other the difference between the asset value at the time of opening the transaction and at the time of its closing.
The contract specifies the asset for which it was conclud, its volume, and the time of closing the transaction is chosen by one of the parties at its discretion (the contract is perpetual).
Ownership rights to banknotes
Do not transfer , that is, from asia mobile number list a legal point of view, this is not a purchase and sale, unlike futures!
A buy position is sometimes call a “long position” or “cover play” and opening a sell position is call “uncover play” or “short position”. These terms have come to the world of Forex from the stock exchange past. You can also hear such expressions as: “playing long” and “playing short”.
So how does a contract like CFD help you make money trading the EURUSD pair during a downtrend?
In fact, by opening an agreement a sell position, a Forex trader receives from the broker the right to manage euro banknotes on the condition of, usually, dollar margin. The broker grants the right to sell (without transferring the right of ownership) his funds, provid that he also receives euro signs in the same amount.
The trader exchanges euros for dollars
Waits for the an agreement somewhere in a category or at the bottom of the e-shop’s homepage? euro to depreciate and adb directory buys it back, closing the deal.
As a result, the trader ends up with more euros on hand than he had when the deal was open. The broker gets his euros back, and the remaining difference, in dollar equivalent, goes to the trader.