What Does it Mean to Go Short a Forex Currency Pair? - Definition Going Short in Forex Trading

In forex trading as trader you will be selling one forex currency for another. When you sell a currency in forex trading this is known as going short.

Going short is therefore just another term used to refer to selling of a currency pair.

You will use forex charts to determine when to go short a currency pair - you will go short if the prices on the forex charts are moving in a downward trend direction.

Definition Going Short in Forex Trading

If the price of a forex currency pair is going down we sell the currency pair, this is referred to as going short. When the forex market trend is going down it is referred to as a bearish market. The example below shows a downward forex trend, this is when a short sell trade is placed and a trader goes short. The short sell is identified by drawing a downwards trendline on a forex chart. The example below shows a short sell signal.

What Does it Mean to Go Short a Forex Currency Pair? - Definition Going Short in Forex Trading