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Going short

In forex trading, going short (or shorting) refers to the practice of selling a currency with the expectation that its value will decrease. A trader would sell a currency pair, such as EUR/USD, if they believe the euro will weaken against the US dollar. If the currency pair does indeed decrease in value, the trader can buy it back at a lower price, making a profit. However, if the currency pair increases in value, the trader will suffer a loss. Going short is the opposite of going long, which refers to buying a currency pair with the expectation that its value will increase.

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