Short (short position)

Updated 2026-09-20

Definition

A position opened by selling, to profit if price falls.

Why it matters

With CFDs you can sell short as easily as buying. Losses are theoretically unlimited if price rises a lot: a stop loss is essential.

Practical example

You sell EUR/USD at 1.1000 and close at 1.0950: +50 pips.

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Full glossary

Educational content, not financial advice. Trading involves risk.