What is short position?
A long position's inverse is a short position. It is possible to achieve this by selling a specific currency when its value is expected to fall. When the currency reaches the lower price, it will be purchased again. The short position is said to be closed when the trader buys back the asset at a price lower than the selling price.
For example, if a trader expects the Euro to fall in value against the US dollar, he must sell one unit of Euro for 1.32800 US dollars. Hold this position until the Euro falls in price, then buy it back at the lower rate.
For example, if a trader expects the Euro to fall in value against the US dollar, he must sell one unit of Euro for 1.32800 US dollars. Hold this position until the Euro falls in price, then buy it back at the lower rate.
Jun 24, 2022 19:00