Hi what do you mean by ''going short ''
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Hi what do you mean by ''going short ''
I'm new to forex and most of the terms are pretty much unfamiliar to me.I hope to get more information on this forum on how to trade the forex market. please can anyone tell me what it means to go short?
Thanks
Thanks
Re: Hi what do you mean by ''going short ''
Helloo, Festacboy,
Going short refers to an investment position that benefits from a decline in market price of an asset or security.One of the distinct advantage forex have over equity trading is the ability to sell currencies with virtually no limitations. In the U.S stock market,it is much more difficult to go short due to the zero uptick rule, which prevents investors from shorting a stock unless the last immediate trade was equal or lower than the price of the short sale.
Actually, unlike the equity market, profit potential exists in the forex market regardless of whether a trader is long or short, or which way the market is moving. Stocks are more often considered a ''buyers'' market, since market rules and regulations are structured to discourage short selling(selling shares one does not own). Since currency trading always involves buying one currency and selling another, there's no strict bias to the market. This means the trader has an equal potential to profit in a rising
, as well, as a falling market.
Hope this helps
Going short refers to an investment position that benefits from a decline in market price of an asset or security.One of the distinct advantage forex have over equity trading is the ability to sell currencies with virtually no limitations. In the U.S stock market,it is much more difficult to go short due to the zero uptick rule, which prevents investors from shorting a stock unless the last immediate trade was equal or lower than the price of the short sale.
Actually, unlike the equity market, profit potential exists in the forex market regardless of whether a trader is long or short, or which way the market is moving. Stocks are more often considered a ''buyers'' market, since market rules and regulations are structured to discourage short selling(selling shares one does not own). Since currency trading always involves buying one currency and selling another, there's no strict bias to the market. This means the trader has an equal potential to profit in a rising
, as well, as a falling market.Hope this helps






