Guide for traders

Many people believe that trading is similar to gambling. But is this the case? Let's take for example a game between teams A and B and suppose we bet on team A’s win. If team A actually wins, then we will be paid. If team A loses, then we will lose our money definitively and irrevocably.

In trading, however, things are not the same. Let's suppose we buy the currency A at an x value and our aim is to sell it later at a value y that will be greater than x. If, after the purchase that we made the currency price falls, then -naturally - the total of the nominal value of our account will be lower than it had before making that purchase and thus we will have a loss. However, this damage is not definitive and irreversible, but temporary. Apart from the ways of dealing with the fall in the price of a currency - which we will examine in next chapters -, the rule is that without selling there is no real gain and no actual loss.

You don’t lose if you don’t sell!

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