[zazakizi]

I'm starting to learn Forex from fxcm.com and it's interesting, but there is one thing that my brain just doesn't want me to understand... it's a real basic thing: -A buyer wants the price to go up -A seller want the price to go down To me this doesn't sound logical, because normally a buyer wants to buy for the lowest price and a seller want to sell for the highest price.

[trevman]

youve answered your own question

"A buyer wants the price to go up"
"normally a buyer wants to buy for the lowest price"

if you buy at any point in time you want it to be the lowest point over a given period of time (or pips). buy low, sell high OR buy high, sell higher.

[rococo]

Basically you need to buy at a low price and sell at a higher price. It doesn't matter if you BUY FIRST at a low price (LONG) to SELL LATER at a higher price or SELL FIRST at a high price (SHORT) to BUY LATER at a lower price. Either way you make a profit.

[Btrader]

Originally Posted by zazakizi

I'm starting to learn Forex from fxcm.com and it's interesting, but there is one thing that my brain just doesn't want me to understand... it's a real basic thing: -A buyer wants the price to go up -A seller want the price to go down To me this doesn't sound logical, because normally a buyer wants to buy for the lowest price and a seller want to sell for the highest price.

Well, to make it easy for you.. In foreign exchange transaction, you are simultaneously buying one currency and selling another.. Let's say you want to go long on GBP/USD order which means you buy(the one you receive) GBP and you sell(the one you spend) USD simultaneously.. So if you are the buyer, in order for you to receive a lot of profit then you want the price to go up.. And in order for you to make a profit when you are the seller, you want the price to go down..

I hope this would help clear your confusion..

[msg4imti]

Price is relative $100 may be big amount for someone while it may be a low amount for another. This difference in perception of value of an asset is what is traded in market.

[numa]

well, you posed the right questions :-)