This is an act of faith . You are betting on the growth, stability, or rising interest rates of a specific nation’s economy. You want to hold that "asset" because you believe its value will appreciate.
Buying is an investment in a country's future; selling is a bet on its relative decline or a move toward a more stable harbor.
usually happens when a country raises interest rates (attracting investors) or shows strong GDP growth.
This is an act of utility or speculation . In the retail world, you "sell" a pair even if you don't own the base currency. You are essentially borrowing the currency to sell it now, hoping to "buy it back" later at a cheaper price. 3. The Hidden Cost: The Spread You’ll notice two prices: the Bid and the Ask .