Difference Between Buy & Sell in forex

When a trade is made in forex, it has two sides - someone is buying one currency in the pair, while another individual is selling the other. Generally, in the forex market, it helps to think of money as a commodity. When you buy a currency you hope that its value will strengthen compared to the currency that you are selling. If you are selling, you are betting that the currency you are selling will weaken compared to the currency you look to buy In the retail currency exchange market, different buying and selling rates will be quoted by money dealers. Most trades are to or from the local currency. The buying rate is the rate at which money dealers will buy foreign currency, and the selling rate is the rate at which they will sell that currency Example of a Forex Trade: The EUR/USD rate represents the number of US Dollars one Euro can purchase. If you believe that the Euro will increase in value against the US Dollar, you will buy Euros with US Dollars. If the exchange rate rises, you will sell the Euros back, making a profit.