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mohamed_awad
08-07-2007, 09:14 AM
Welcome, my friends, I want to know how can this example, I want the purchase price of 141.25 yen to the dollar and sell it if given the market conditions at 141.55 How can be through the circulation achieve this, I am sorry because the English language is not good
Dennis Carr
08-07-2007, 10:10 AM
Welcome, my friends, I want to know how can this example, I want the purchase price of 141.25 yen to the dollar and sell it if given the market conditions at 141.55 How can be through the circulation achieve this, I am sorry because the English language is not good
Welcome to you Mohamed
Don't worry about your English: it seems pretty clear.
We haven't seen prices like those for USD/JPY since the late 1990's! However the principle is the same whatever the price: we buy in order to sell at a higher price at a later time.
So when price hits the level of 141.25 we buy and keep this position open until price rises to 141.55 and we sell.
This gives us a profit of 30 pips.
You might want to subscribe to Forex Primer (http://fxclub.com/private-forex-primer/): it covers questions like this in some depth and it's free.