January 28, 2023

Go Short: Learn basic Forex Terms & Definitions

Go short - Forex Terms

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When we talk about trading, we often use the expressions “long” and “short”. In all financial markets, including Forex, you “go short” by shorting an equity or currency when you believe it will fall in value.

Short is an investment position that benefits from a decline in market price. When the base currency in the pair is sold, the position is said to be short.

To go short is to have sold an instrument without actually owing it, and to hold a short position with expectations that the price will decline so it can be bought back in the future at a profit.


What does it mean to go short in Forex?

In Forex, whether you are making “long” or “short” trades, you are always long of one currency and short of another. If you sell, or go short, EUR/USD, then you are long USD and short EUR.

Find more terms and definitions in LQDFX website!

Sources: Wikipedia, Investowords, the balance.com

PLEASE NOTE The information above is not investment advice.