Going Short Confusion

Okay, I get going long–buy low, sell high–but I don’t get how going short works. Any help is appreciated, thanks.

It works in reverse…sell high, buy low :)…

Seriously tho, going long means you are buying the first currency in the pair (with the 2nd currency) and that you believe the exchange rate (price) will increase. Going short means you are buying the 2nd currency in the pair (with the first currency), and you believe the exchange rate (price) will decrease. You don’t have to own or posess either currency before you can trade it long or short :wink:

Hope that helps :slight_smile:

Short - sell high, buy low.

Shorting in forex is simply buying the other currency (quote currency). For example:

To go long on GBP/USD you BUY pounds and SELL dollars (at low) and then sell the pounds and buy back dollars when exiting (at high)

To go short on GBP/USD you SELL pounds and BUY dollars then to exit you buy pounds back (by selling your dollars).

Hope that helps a little

Thanks, I kinda figured it was that but just wanted to make sure. :slight_smile: