Opening two Positions
For our USD/JPY example, we are going to Buy the pair, as we think that the recent Yen gains are going to be reversed, and the low point is actually a good place to buy the Dollar at a cheaper rate than at the start of the trading session.
Here is the graph once we place an open position.
USD/JPY - October 24, 2006 - 1:00 PM
In case you were wondering why the position has started at -2 pips, the spread is 3 pips for this pair, so by the time this image was captured the trade had gone in our favor by one pip. Our trade needs to reach 119.23 to be even. Right now the current price is the brown horizontal line at 119.21.
At the same time, we will open another position for the sake of comparison that bets against the Dollar. It would be too simple to take the Sell side of our USD/JPY pair, and therefore the positions would be mirror opposites of each other.
EUR/USD - October 24, 2006 - 1:00 PM
Last Modified: 2009/10/27 09:43:08