First, you should decide whether you intend to buy or sell. If you want to buy (which actually means buying the base currency and selling the quote currency), you will expect the base currency to appreciate and then you will sell at a higher price. In the words of traders, this is called “long” or “long”. Just remember: long = buy.
If you want to sell (which actually means selling the base currency and buying the quote currency), you expect the base currency to depreciate, and then you will buy at a lower price. This is called “short selling” or “clearing”. Just remember: short = sell.
“I am long and short”, the implication is that the foreign exchange market can be both long and short.
Bid / inquiry
All foreign exchange quotes appear at two prices: bid and inquiry. For most cases, the bid is lower than the inquiry.
Bid refers to the price that your broker is willing to exchange the base currency for the quote currency. This means that the bid is the best price you (the trader) will sell to the market.
Inquiry refers to the base currency that your broker will sell in exchange for the price of the quoted currency. This means that the inquiry is the best price you buy from the market. Another statement of inquiry is quotation.
In the above EUR / USD quote, the bid is 1.34568 and the inquiry is 1.34588. Take a look at how this broker simplifies your trading.
If you want to sell Euros, you click “Sell” and you will sell 1.34568 Euros. If you want to buy Euros, you click “Buy” and you will buy 1.34588 Euros.