Trading foreign exchange or contracts for differences on margin carries a high level of risk, and may not be suitable for all investors. There is a possibility that you may sustain a loss equal to or greater than your entire investment. Therefore, you should not invest or risk money that you cannot afford to lose. You should ensure you understand all of the risks. Before using Milton Prime services please acknowledge the risks associated with trading.
Milton Prime is owned and operated by Milton Global Ltd, with its registered office at First Floor Room B11, Province Complex, Mahe, Seychelles, and business address at Office 1, Unit 2, 2nd Floor, Dekk Complex, Plaisance, Mahe, Seychelles. Milton Prime is a Securities Dealing Firm fully regulated by the Seychelles Financial Services Authority (FSA) with license number SD040. Milton Prime offers an extensive range of smart, user-friendly products, services, and trading tools that appeal to the pros and empower new traders to enter the online trading arena.
Licensed and regulated by the Seychelles Financial Services Authority(FSA), Milton Prime is committed to creating a secure and fair trading environment. Our cutting-edge platform provides the highest levels of transparency and protection with advanced technology that safeguards the privacy and safety of client funds and creates a reliable trading environment that traders know they can trust.
The content of this website must not be construed as personal advice. Milton Prime recommends you seek advice from an Independent Financial Advisor.
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Traders usually decide to open short positions when they believe that the price of a certain asset will fall. Going short in Forex means that you are betting that a currency will fall in value. If your prediction is correct, you will end up making money.
If you are a trader that believes that the price of a currency pair is going to decrease, you will be opening a short position. On the other hand, if you think that the price is going to increase, you will open a long position. Going short is the exact opposite of taking a long position.
For example, let's say that you are trading GBP/USD currency pairs and you believe that the price of the GBP is going to decrease in the pair. In this case, you are more likely to choose to sell GBP, which means a short position in Forex trade. On the other hand, if you believe that the price of GBP/USD is going to increase, you would go long.
Both positions, long and short in Forex trading, are a very important part of Forex trading, and understanding them is essential. In the financial markets, shorting is mostly associated with stocks, however, traders can short numerous trading assets. This includes Forex, indices, as well as commodities.