Two-way Business Opportunity In Forex Trading
Forex trading business is a great business. Not only its high return nature despite high risk, but there is one more interesting nature. That is Two Ways Opportunity or Two-Way Business Opportunity. Yes, in trading usually we have to buy first and then we will resell it by hoping there is a profit difference there. But trading in the Forex market, we can sell first and then buy back with the same hope that there is a profit margin. The concept of profit can be read in Forex Trading Concepts.
Why did it happen? Simple answer, the forex market is a high-liquid market and the concept of margin. Or a real illustration is like trading with dropship and consignment systems. You have no goods, but you can sell. Of course, you have to sell at a price higher than the price offered by the owner of the goods (suppliers). If the goods you are selling (first) there is a buy, then you must pay to the supplier according to the supplier price and you can still hold the difference in profit.
In the forex market, you do not know who the seller is and who the buyer is. Especially through the SPA system, the paired selling and buying positions are not known to whom. In forex brokers, all positions are continued or forwarded to liquidity providers or in Indonesia referred to as Futures Traders. They are responsible for the system for positioning.
When did Selling action first? Of course when the price is estimated to have a downward trend. If the price drops, then we are advised to sell to the optimal price and close the action by taking action to buy. If the positive price difference then you get a profit.
This two-way business opportunity is one of the advantages of forex trading. We do not have to wait for the price to fall optimally first (when we already know prices tend to fall) we just do the buying action. We will lose the opportunity to profit.
Selling action first is not without risk. If the price turns up when you make a sale, then you could be exposed to the risk of loss. Also to keep in mind is the price can move in both directions, up and down. You should be able to use both.