Trading on Monyxa is based on strategy and sentiment:
- An investor who believes that the price of an instrument will rise in value will open a BUY position.
- An investor who believes that the price of an instrument will fall in value will open a SELL position.
Opening a SELL position – also known as ‘short-selling’ or ‘going short’ – is therefore generally used either when markets are falling, or as a hedging tool.
Like all trading platforms, prices on Monyxa have a spread, meaning the BUY and SELL prices are different (the BUY price is always higher). When you open a SELL trade, it opens at the SELL price. The position increases in value as the asset’s price goes down, or decreases in value as the asset’s price goes up. A SELL trade closes at the BUY price.