How can you sell Eur before selling Usd? | Forex Factory

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If you buy gbp/usd and sell eur/usd, is that the same as being short eur/gbp? 1 reply

How can you sell Eur before selling Usd?

  • #1
  • First Post: Oct 29, 2007 10:23am Oct 29, 2007 10:23am
...since a lot of accounts are supplied with Usd.

Thank you.

rudenstein
  • #2
  • Oct 29, 2007 10:45pm Oct 29, 2007 10:45pm
You should take a course or two in the forex before you actually trade.
  • #3
  • Oct 30, 2007 5:37pm Oct 30, 2007 5:37pm
Why do you think I am asking this question then? duh!
  • #4
  • Oct 30, 2007 6:10pm Oct 30, 2007 6:10pm
Quoting rudenstein
Why do you think I am asking this question then? duh!

LOL...this isn't a course, this is a forum. Sign up for a forex course or two before I start thanking you for joining the 95% club.
  • #5
  • Oct 30, 2007 6:19pm Oct 30, 2007 6:19pm
Quoting WHTenn
LOL...this isn't a course, this is a forum. Sign up for a forex course or two before I start thanking you for joining the 95% club.

Play nice.
  • #6
  • Oct 30, 2007 6:28pm Oct 30, 2007 6:28pm
R: You will want to probably start at babypips.com for a rudimentary explanation of how the currency markets work and your interaction w/ them through your broker.
From the paragraph two of "Pre-School"
Quote
What is traded on the Foreign Exchange? The simple answer is money. Forex trading is the simultaneous buying of one currency and the selling of another. Currencies are traded through a broker or dealer, and are traded in pairs; for example the Euro dollar and the US dollar (EUR/USD) or the British pound and the Japanese Yen (GBP/JPY).
I am not making fun --- you should spend some time on babypips, it will answer a lot of the basics one has when they start their journey in Forex.
In trading, there is no bullshit. You either make money or you don't.
  • #7
  • Oct 30, 2007 6:40pm Oct 30, 2007 6:40pm
Excellent advice on a course
  • #8
  • Oct 30, 2007 10:01pm Oct 30, 2007 10:01pm
you are quoting unproven facts, WH
  • #9
  • Oct 30, 2007 10:35pm Oct 30, 2007 10:35pm
R: There is an old adage "Best to be silent and thought the fool, than to open your mouth and remove all doubt"

Quoting rudenstein
you are quoting unproven facts, WH
In trading, there is no bullshit. You either make money or you don't.
  • #10
  • Oct 30, 2007 11:35pm Oct 30, 2007 11:35pm
Quoting mrgreen
R: There is an old adage "Best to be silent and thought the fool, than to open your mouth and remove all doubt"
Around here I guess that's called confirmation.
  • #11
  • Oct 31, 2007 12:05am Oct 31, 2007 12:05am
nice, i admire how high your iq can go giving a noob advise.
you are truly smart and professional people, my respects for those kindergarten answers.

some people here forgotten when they got started, or maybe they got a trader gene so they did not learn anything and just started trading, this question has rounded the mind of many people when they start.

"How can you sell Eur before selling Usd", i bet most of the jokers here even dont know the right answer. probably they ll come up after me with an answer they just googled.

for the starter of the thread.
www.babypips.com , can give free your mind of the normal logic, forex is illogical.
  • #12
  • Oct 31, 2007 1:34am Oct 31, 2007 1:34am
i guess the question is that in eur/usd and the account is in usd, so when he put sell ... how can he sell something that isn't been bought yet?

so the simple answer is that we buy and sell with contract, not with the currency it self
  • #13
  • Oct 31, 2007 4:14am Oct 31, 2007 4:14am
New Forex Friend Rudenstein
I apologize if my first response wasn't helpful. It just seemed odd that someone would ask a question, then reply to the respondants with sarcasm. quote, Duh, unquote. But I'll answer the question the way it was asked, though an attempt to clarify the question might be in order.

So the question was, "How can you sell Eur before selling USD?"
Since forex transactions are the simultaneous buying of one currency while selling another, or, the simultaneous selling of one currency while buying another, it seems it would have to be done in two transactions. I don't know how you could literally sell two currencys in a single transaction.
If you short Eur/Jpy you have just sold Euros. Then you could go long Eur/Usd and you have sold USD.
So you have just sold Euro first, then USD, which answers the question as it was asked.
Either the question was a riddle, or it was asked with a misunderstanding of forex transactions. I don't think anyone took it as a riddle, hence the forex course suggestions.
We could help you more if you elaborated a bit on your question.
Babypips is great. Also if you read the stickys at the top of this beginners forum you will mind many, many links with detailed information on almost any Forex topic that you might care to study.
BTW, WHTenn has helped more people than you'd care to count.

Wish you all the best in your Forex studies

Bill
  • #14
  • Oct 31, 2007 4:21am Oct 31, 2007 4:21am
Quoting acidguy
nice, i admire how high your iq can go giving a noob advise.
you are truly smart and professional people, my respects for those kindergarten answers.

some people here forgotten when they got started, or maybe they got a trader gene so they did not learn anything and just started trading, this question has rounded the mind of many people when they start.

"How can you sell Eur before selling Usd", i bet most of the jokers here even dont know the right answer. probably they ll come up after me with an answer they just googled.

for the starter of the thread.
www.babypips.com (http://www.babypips.com) , can give free your mind of the normal logic, forex is illogical.
Okay, I straightened up and answered the best way I could. Now what's your answer? If this question has rounded your mind, you certainly have the answer. Why not share it?
  • #15
  • Edited 3:18pm Oct 31, 2007 3:04pm | Edited 3:18pm
Quoting rudenstein
you are quoting unproven facts, WH
MRGREEN and BILLFELT give excellent advice.
  • #16
  • Nov 2, 2007 12:08am Nov 2, 2007 12:08am
billflet,

babypips.com is indeed a great resource.. been reading for hours at a time already.

Indeed, my question (which was rushed and which I should have elaborated from the start) pertained to selling something that hasn't been bought yet.

rudenstein
  • #17
  • Nov 2, 2007 12:26am Nov 2, 2007 12:26am
Quoting rudenstein
billflet,

babypips.com is indeed a great resource.. been reading for hours at a time already.

Indeed, my question (which was rushed and which I should have elaborated from the start) pertained to selling something that hasn't been bought yet.

rudenstein
Ahhh... Here's my spiel to clients from years ago.

3 Players. You, Joe & Mike.
You know Joe & Mike.
Joe & Mike do not know each other.

Joe wants to SELL his 2004 Chev Impala for $12,000.00
Mike wants to BUY a 2004 Impala and is willing to Pay $14,000.00

Sell Mike an Impala @ $14,000.00 and take that Money to Joe and BUY one @ $12,000.00.
Pocket the $2,000.00 Difference.

PROBLEM
Sell Mike @ $14,000.00
BUT
Joe has had Numerous Offers on his Impala to the point that he is now asking $15,000.00

You Commited to Mike @ $14.000.00 and therefore you lose $1,000.00 on "THE TRADE"

Make any sense?
  • #18
  • Nov 2, 2007 1:10am Nov 2, 2007 1:10am
Quoting rudenstein
billflet,

babypips.com is indeed a great resource.. been reading for hours at a time already.

Indeed, my question (which was rushed and which I should have elaborated from the start) pertained to selling something that hasn't been bought yet.

rudenstein
Hello Rudenstein
So your question was about selling short. Selling short means you are borrowing a position (for instance one lot of EUR/USD) and selling it now at todays price. And you are agreeing to buy a position (again, one lot of EUR/USD) at some point in the future to replace the one you borrowed and already sold. You're believing price will go down and you will pay less at a later date. In the beginning it's tough to understand this in trading terms.

So let's use another example. You are a car dealer(trader) and have a client (market) wanting a go-fast-cruiser (forex position). The wholesale price is 20K. You have none on your lot, but know a dealer (broker) who does. So, you borrow the go-fast-cruiser (forex position) from the other dealer (broker) and sell it to your customer (market). But instead of paying the other dealer in cash, you agree to give him back another go-fast-cruiser (position) at a later date of your choosing. He charges you a small fee (spread). You've heard rumors that there will be a glut of go-fast cruisers(position) and price will drop. When the price drops, you buy a cruiser (position) at the reduced price of 15k and hand it over to the dealer (broker) to whom you owe. You've made 5k by selling something you never owned.
That's a good trade.
But say the glut of go-fast-cruisers never comes. Instead a labor strike shut down the assembly line and ther are only a few left. The dealer who loaned you the cruiser won't accept 20k--the original wholesale price. According to the terms, you owe him a cruiser no matter what the price, which happens to be rising. You can only find one and it now costs 30k, but the price is going to go up. So you pay 30k for the cruiser and return it to the dealer to whom it is owed.
That's a short sale gone bad.

Hope this helps.

Bill
  • #19
  • Nov 2, 2007 1:13am Nov 2, 2007 1:13am
That's great Bemac! We were typing at the same time.

Maybe we should be selling cars instead.
BTW, yours was much quicker to the point.
  • #20
  • Last Post: Nov 2, 2007 10:57am Nov 2, 2007 10:57am
Doing a course is not enough, I think you just need few months reading about forex and study averages.
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