Buy Definition – What is Buy in Trading? | CFI

buy

Buying a financial instrument is the act of taking a [long position] on the instrument, speculating that the price of the instrument will rise. The buying rate of the [instrument] is referred to as the [asking] or offer price.

 

Traders who have bought a financial instrument are commonly referred to as bulls and they will buy when an instrument displays signs of strengthening in price due to increased demand. Conversely, traders who have sold a financial instrument are referred to as bears and they have the opposite opinions.

 

Part of a profit [yielding] strategy for a trader is to know when to buy an instrument. Each buyer will naturally have their unique style of trading.

 

Key takeaways:

  • Bulls are traders who buy instruments as they expect the price to rise and might be holding long positions.
  • A big part of trading is developing one’s unique style of trading that would lead to profitability.
Credit Financier Invest (Mauritius) Ltd is an award winning global financial markets provider with over 23 years of experience and regulated entities in several jurisdictions, focused on offering impeccable execution and trading conditions including very low spreads, professional services, dedicated support and powerful tools.
Credit Financier Invest (Mauritius) Ltd has regulated subsidiaries in
London • Larnaca • Beirut • Amman • Dubai • Port Louis
Credit Financier Invest

Important Disclaimer:


We would like to remind that while we endeavour to provide best possible services, CFI provides execution only services and any information, reports, opinions, commentary or other materials he receives from CFI directly or from its employees or through any analytical tools provided to him or third party research provided to him from the Company shall not be deemed as investment advice and it cannot be relied upon to make investment decisions. The Client commits to make his own research and from external sources as well to make any investment. The Client accepts that CFI will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The contents of any report provided should not be construed as an express or implied promise, as a guarantee or implication that clients will profit from the strategies herein, or as a guarantee that losses in connection therewith can, or will be limited.


Forex and CFDs are leveraged products that incur a high level of risk and a small adverse market movement may expose the client to lose the entire invested capital. The vast majority of retail client accounts lose money when trading in CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money. The possibility exists that you could sustain a loss in excess of your deposited funds even if a stop loss is used and therefore, you should not speculate with capital that you cannot afford to lose and be aware of trading risks. Credit Financier Invest (Mauritius) Ltd provides general information that does not take into account your objectives, financial situation or needs. The content of this website must not be interpreted as personal advice. Please ensure that you understand the risks involved and seek independent advice if necessary.

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