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.

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