Short position

What Is Short Position

What Is Short Position?

When used in trading, the term “short” refers to a position that profits when the price of an asset decreases.

Typically used in conjunction with “selling” or “going short” or “taking a short position”.

Because you buy and sell currency pairs when trading in the forex market, “going short” means selling the base currency and buying the quote currency.

For instance, if you sell euros and buy US dollars, you are short EUR/USD.

Going short is the inverse of going long, which implies taking a position that profits if the price of an asset rises.

Short selling is the most well-known method of shorting.

Short-selling is a strategy in which a trader borrows an asset from a broker and then sells it on the market. Typically, the broker is responsible for borrowing and selling the asset.


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