Short

0
17
Short Position
Last modified: May 3, 2021
Estimated reading time: < 1 min

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”.

When you trade in the forex market, since you buy or sell in currency pairs, “going short” means that you are selling the base currency and buying the quote currency.

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.


If this article seems useful for your then please click the like button below. You can also share your valuable feedback or ask questions in the below comment section. Also, subscribe to our newsletter for trading-related updates.
Was this article helpful?
Dislike 0 0 of 0 found this article helpful.

OPEN A DEMO ACCOUNT

Previous articleRollover Fee
Next articleSlippage
FXPedia.info helps individual traders learn how to trade the forex market. We introduce people to the world of currency trading and provide educational content to help them learn how to become profitable traders. We're also a community of traders that support each other on our daily trading journey.

LEAVE A REPLY

Please enter your comment!
Please enter your name here