Hello and Happy New Year!
I have a very basic question about metatrader 4 and trading stocks.
I think I should probably tell you that I have very little experience in trading stocks. But I have been trading forex for a year or so. After looking at some charts I thought I'd give stock market a try too. So I looked at my MT4 and saw that I am able to sell / buy stocks just as forex pairs. This confused me. How can I possibly sell a stock without buying it in the first place and make profit? I know I can buy stocks and then sell after the price rises to make a profit. But MT4 has a "sell" option for equities just like for Forex.
http://i.imgur.com/PV1uUdu.png
Just out of curiosity I "sold" a stock when it was already falling and cloed it after the price fell further down, and made a profit. I am unable to understand the logic behind this. Eg. if you buy EUR/USD that means you are buying EUR. and when you sell EUR/USD you actually buy USD. But how can this be applied to selling a stock without buying it first and then end up with a profit?
http://i.imgur.com/MfnhRO0.png
I hope what I am trying to explain clear to you guys.
I have a very basic question about metatrader 4 and trading stocks.
I think I should probably tell you that I have very little experience in trading stocks. But I have been trading forex for a year or so. After looking at some charts I thought I'd give stock market a try too. So I looked at my MT4 and saw that I am able to sell / buy stocks just as forex pairs. This confused me. How can I possibly sell a stock without buying it in the first place and make profit? I know I can buy stocks and then sell after the price rises to make a profit. But MT4 has a "sell" option for equities just like for Forex.
http://i.imgur.com/PV1uUdu.png
Just out of curiosity I "sold" a stock when it was already falling and cloed it after the price fell further down, and made a profit. I am unable to understand the logic behind this. Eg. if you buy EUR/USD that means you are buying EUR. and when you sell EUR/USD you actually buy USD. But how can this be applied to selling a stock without buying it first and then end up with a profit?
http://i.imgur.com/MfnhRO0.png
I hope what I am trying to explain clear to you guys.