Can somebody please explain how to actually go about shorting a currency pair and the way in which it works. Do you click sell and place the trade?
Yes, you just click Sell instead of Buy.
Remember when you open a trade you are opening a bet with your broker that the exchange rate between two currencies will either rise or it will fall. You are not buying any currency and you are not selling any currency, and neither is your broker.
To short a pair or stock for that matter:
- Sell at market: (that means press sell - from then you are “short” the pair.
- Sell Limit - that means you are setting an order at higher price than currently the market is at. If the price pulls back to the order it will be “filled” and you will be “short” the pair,.
- Sell Stop - this means placing a sell stop order below the current price so that if the market continues down and touches your order price the order will be “filled” and so you will be “short” that pair until you close the position.
Do the opposite of all the above directions for going “long” on the pair
Remember to close a sell order you buy and to close a buy order you sell to put it in as simple terms as I can dream up right now.
Good luck in your trading journey.
Yes, you can take entries for short position but through scalping, you can gain small pips. For scalping, you should use such a broker that provides you with advanced technology.
Trading in the short positions can be a good idea for yielding profit within a very short time. So, try it with a regulated broker.