If you are going long then you think that sterling is going to rise against the dollar. Therefore you would be buying sterling. The theory being that when you sell them later you will buy more dollars.
But with forex trading you don't actually buy or sell anything do you? You are really just playing the points, at least that is the way I explain it to myslef. You are open to exchange rate risk if you have a trading account that is not in your national currency but that is another matter.
i am new to this fx thing and i think that the sterling is gonna rise.
i dont think however i wanna go long cos of the interest charges
(i wanna hold on for a profit of 100-150 pips).
i think ill wait till dollar gets weaker and go short(that would be buying dollars sellig sterling....right?).
cmc requires a 1% margin and im thinking of using about £4000 which would give me 400k.
a profit of 100pips would give me a $4000 profit.
Any views or tips would be greatly appreciated.
I have a suspicion you are probably wanting to use way too much margin. Isn't the range on GBP/US 100pips on occasions? As such if you're targeting a $4k win you could easily lose $4k in a day just by getting the timing wrong and if you can't make the margin call it is adios amigos. Risking even 10% of your trading account on a trade is generally seen as bordering on out and out gambling and it doesn't sound as if you have a £25k account (although apologies if I'm wrong).
if i go short around the 169-170 mark surely ive gotta make profit.
thats assuming that i can keep the position open for as long as i want without charges.
and regarding my account..topping up my margin is an option if the need arises