When used in trading, short refers to a position that makes a profit if an asset’s price decreases.
Usually used in context as “going short” or “taking a short position” or “selling”.
For example, if you go short EUR/USD, you are selling euros and buying U.S. dollars.
Going short is the opposite of going long, which means taking a position that makes a profit if an asset’s price rises.
The most well-known method of shorting is short selling.
Short-selling is when a trader borrows an asset they do not own from a broker and sells it on the market. Usually, the borrowing and selling of the asset are taken care of by the broker.
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