Buying is an investment in a country's future; selling is a bet on its relative decline or a move toward a more stable harbor.
usually happens when a country raises interest rates (attracting investors) or shows strong GDP growth.
The price at which the market will sell to you (always higher).The gap between them is the "Spread." This is the friction of the market—the "tax" you pay to the house for the privilege of trading. 4. The Macro View buying versus selling currency
The first currency (EUR) is the "basis" for the trade.
This is an act of faith . You are betting on the growth, stability, or rising interest rates of a specific nation’s economy. You want to hold that "asset" because you believe its value will appreciate. Buying is an investment in a country's future;
The price at which the market is ready to buy from you (always lower).
The second currency (USD) is what you use to settle the bill.If you think the Euro will get stronger or the Dollar will get weaker, you Buy (Go Long). If you think the opposite, you Sell (Go Short). 2. The Psychology of the Trade You are betting on the growth, stability, or
Here is the "deep dive" on how this exchange actually works: 1. The Dual Nature (The Pair) You never just buy "Euro." You buy the pair.