GLOSSARY

Short

Short or Short Position or Short Selling is to open a sell order. By looking at the asset price will go down in the future Typically, short is used with stock assets. The principle is to borrow shares to sell (at a high price) before buying them back (at a low price), thereby making a profit from the difference in the falling market price. (high price – low price)


Going short is an investment strategy when investors anticipate that the price of an asset will fall in the future. Usually, short positions are not possible because investors need to borrow stocks from investment banks or brokers or financial institutions before they can open short positions. and have to pay a fee for borrowing shares.

Short is a margin trade, so there is a chance of a margin call to maintain the short position, but without sufficient margin, the short position will be forcibly closed.

In the Forex market, short is like selling, which is a profit in a down market. Traders view that the pair will weaken in the future.

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