Foreign Exchange: Managing Spot Positions
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Foreign Exchange: Managing Spot Positions

Intuition Publishing
Updated Sep 24, 2020

How does a trader make money by trading foreign exchange? A trader makes a profit when an open position is established at one price and closed, or squared, at a better price. We investigate how trades are opened and closed, whether it is the base or variable currency that is being traded. Trading can bring losses as well as profits, so we look at how traders may be subject to daylight and revaluation limits.