In short, foreign exchange trading is to change the currency of one country into the currency of another country and earn the difference according to the fluctuation of exchange rate.

When you think that the exchange rate of a currency pair will rise, then you buy this currency pair and go long;

When you think that the exchange rate of a currency pair will fall, then you sell the currency pair and short it;

Let's take EUR/USD (EUR/USD) as an example to illustrate how long and short are profitable:

First of all, we need to judge the exchange rate trend of the euro/dollar through technical aspects and fundamentals. If it is judged that the exchange rate will rise, then we will convert dollars into euros at this time. If the exchange rate at this time is 1.0 100, we will trade long positions with 1, that is, with USD10/0. In fact, due to leverage, we invested 10 10, which is equivalent to10/0/000 (calculated by 100 times leverage) and bought 654.38 million euros/US dollar. When the price rises to 1.0 10 1,

In the same way. When we judge from the technical and fundamental aspects that the exchange rate of Euro/USD will fall, we borrow Euro from traders with corresponding margin. If the exchange rate at this time is 1.0 100, we are also selling 1 lot. In other words, we invested 10 10 and borrowed 100000 euros from the dealer (the same leverage is 100 times). When the exchange rate fell to 1.0099, we bought euros, returned them to the banker, and made a profit of 1 point, earning 10.