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Basics

Short position

A short position is a sell trade: it gains when the price falls and loses when the price rises. With CFDs you can open a short position without owning the asset.

Also called: short, going short, sell position, sell, short selling

Hypothetical example

Hypothetically, you sell EUR/USD at 1.1000. If you close at 1.0950 the trade gains 50 pips; if you close at 1.1050 it loses 50 pips.

Used in these guides

Basics8 min read
Going long and short: how buy and sell trades work
A long trade gains if the price rises; a short trade gains if it falls. Both lose money when the price moves the other way.
Basics7 min read
What is a CFD (contract for difference)?
How a contract for difference works, what it costs, and why leverage makes it a high-risk product.

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