In Forex market all the currencies are priced (quoted) and traded in pairs (like EUR/USD, GBP/USD), because in trading one needs to sell one currency for buying another, or vice versa. The first currency is known to be the base currency, whereas the second one is the quote currency. In the notation it is possible to write without a separating sign “/”.
When a trader has bought a currency pair (bought a certain volume of base currency and paid for it with the quoted currency), this is called “open a BUY position.” When, in the future, a trader will sell back the same currency pair (will sell the same volume of base currency and get for it the quoted currency), this is called “close a BUY position.” Similarly, when a trader sold a currency pair (sold a certain volume of base currency and paid for it with the quoted currency) – it is called “open a SELL position”, and when a trader bought the same currency pair (bought the same volume of the base currency and paid for it with the quoted currency) – it is called “close a SELL position.” Note that the trader does not have to worry about where to take the base currency for opening a SELL position or opening the quoted currency for the BUY position - these currencies are given temporarily by the company, in which the trader opened a trading account.
