Review Question  

In a spot EUR/SGD quote of 1.7394/98, the price taker wants to buy EUR. What should the price taker say?
  1. Mine
  2. Yours
  3. Paid
  4. Given
Answer:
(1) Correct. The price taker says “mine” in order to buy the base currency (EUR) at the offer price of 1.7398.
 

Topic 2: Managing Spot Positions  

Open & Square Positions

Once a currency has been bought and another currency sold, a position is said to have been taken. The position is said to be “long” on the currency that has been bought, and “short” on the currency that has been sold.
The different positions that can be taken include:
Net Long or Overbought Position
In this case currency inflows are larger than outflows, that is, purchases exceed sales.