Example: Selling Spot EUR/USD

This example takes you through a short-term position on one of our most popular forex markets.

On the morning of 5 February 2009 our EUR/USD price stands at 12837 – 12839.

You believe the euro will fall against the dollar over the short term and decide to 'sell' $10 per point at the bid price of 12837.

Against your expectations, the euro rises against the dollar by midday. Our quote is now 12855 - 12857 and you decide to cut your losses. You 'buy' $10 per point at 12857 to close your position.

The result

Loss: 20 x $10 per point = $200