Market value is the current market value of the ration which we can buy and sell the currency pair for that time. This market value will change the price and this change known as the ticks.
If the market value is increasing, we say the market as bullish, otherwise if the market is falling, we know it as bearish.Below chart show the differences between bullish and bearish:
To get more profit in forex, we first need to well understanding on how the market changes its direction for one specific currency pair whether it is in bullish or bearish trend.
If the direction of that currency pair is in bullish trend, we must take the opportunity to entry BUY position or also known as LONG and vice versa.
For an easy understanding, let me give you one example to illustrate and explain when the right condition to BUY or SELL the currency. Let me use example of goods (gold) here because if I just use the example of currency pair, you may be less understood.
BUY / LONG example: let say you are buying 1 pound of gold today because you had made the prediction that the price of gold will rise for the next day (supposing the price of gold today is $ 63,000 / kg). Fortunately as your prediction the price of gold rose to $ 67,000 / kg for the next day. You continue to sell them and you get net profit of $ 4,000. This is because you hit the market (trade with trends) which means during the market rise, you take the opportunity to buy the LONG / BUY position.
SELL / SHORT example: Suppose you heard the news that the market price of gold will fall and oil prices are suddenly rising (the price of oil and gold contrary). So, you decided to SHORT / SELL the gold or more easily to understand we use the term "Sell first, buy later". So you continue to sell gold (although you actually don’t really have it for sell) at the price of $ 69,000 / kg.
Tomorrow, the price of gold fell to $ 63,000 / kg and you buy goods with the use of gold for the night ($ 69,000). So, you have get $ 6000 as the profit.Chart below show gold price Vs oil price
*These examples is just to give you an easy understanding about the business occurring in forex
BUY / LONG example: let say you are buying 1 pound of gold today because you had made the prediction that the price of gold will rise for the next day (supposing the price of gold today is $ 63,000 / kg). Fortunately as your prediction the price of gold rose to $ 67,000 / kg for the next day. You continue to sell them and you get net profit of $ 4,000. This is because you hit the market (trade with trends) which means during the market rise, you take the opportunity to buy the LONG / BUY position.
SELL / SHORT example: Suppose you heard the news that the market price of gold will fall and oil prices are suddenly rising (the price of oil and gold contrary). So, you decided to SHORT / SELL the gold or more easily to understand we use the term "Sell first, buy later". So you continue to sell gold (although you actually don’t really have it for sell) at the price of $ 69,000 / kg.
Tomorrow, the price of gold fell to $ 63,000 / kg and you buy goods with the use of gold for the night ($ 69,000). So, you have get $ 6000 as the profit.Chart below show gold price Vs oil price
*These examples is just to give you an easy understanding about the business occurring in forex
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