Forex Term

Short

Selling a pair because you expect it to fall.

Going short means selling a currency pair in the expectation that the base currency will weaken against the quote currency. In forex you can short easily because every trade involves buying one currency while selling another. If the price falls, you profit.

Example

Going short USD/JPY is a bet the dollar will fall against the yen.

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Risk

Forex and CFD trading involves significant risk of loss and is not suitable for all investors. Leverage can work against you. This content is educational and not financial advice — always do your own research.