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I need explain trading process
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Author:  bojno [ Tue 20 Aug, 2013, 13:01 ]
Post subject:  I need explain trading process

Hello fellows,

I try to understand the trading process and I hope you help me to understand it ...

I try to explain my problem on example...

Quote:
I have a signal to open long position on EUR/USD and I do buy 0.1 lot. So:
1. When is VOLUME affected? By open position OR by close position OR by both (open and then close too) (IMHO: both)...

2. Will increase the ASK or BID volume if I buy (open long position) it? (IMHO: ASK volume when BUY, BID volume when SELL)...
OR
3. Does it depend on which Offer Side I have selected? (e.g. I have selected BID Offer Side so if I do buy or sell, the BID VOLUME will increase and reversal: buy or sell on ASK Offer Side => ASK volume) (IMHO: this is bullshit... The 2. is correct according to me)...

4. When I do buy (open long position), then the price should go up (increase) or down (decrease)? (IMHO: BUY = GO UP, SELL = GO DOWN)

And later I have a signal to close that opened long position on EUR/USD and I do sell 0.1 lot. So:

5. If VOLUME is affected by close position too, then which volume will increase? (IMHO: BID volume when CLOSE previous BUY, ASK volume when CLOSE previous SELL, simply in reverse than 2.)
OR
6. Does it depend on which Offer Side I have selected? (e.g. I have selected BID Offer Side so if I close position, the BID VOLUME will increase and reversal: close position on ASK Offer Side => ASK volume) (IMHO: this is bullshit... The 5. is correct according to me)...

7. When I do sell (close that opened long position), then the price should go up (increase) or down (decrease) or it doesn't affect the price? (IMHO: CLOSE previous BUY = GO DOWN, CLOSE previous SELL = GO UP)...


I hope you know what I ask you...

P.S.: I know about "Forex VOLUME is not VOLUME in the right sense"...

Regards

bojno

Author:  vadim_berezhnoj [ Tue 20 Aug, 2013, 16:03 ]
Post subject:  Re: I need explain trading process

Greetings.

1. Volume is effected by every action. 0,1 lot(0.1 mil) buy(open) EUR/USD = volume traded 0.1 mil EUR. Same for sell(close).

2. Bid and Ask orders effect volume the same way.

3. The 2. is correct

4. If you see in quotes best ask 1.2mil and you buy all that amount then it will open next best ask so it will change quotes.

5. Correct

7. It will have opposite effect of 4.

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