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A short position is opening a trade with a sale. On the stock exchange, a short position is the sale of one stock, which the seller doesn’t have, for the later purchase of said stock at a more favorable price when the Forex market situation has shifted. For example, you open a short position, selling oil at $50 a barrel, and in a week the price of oil falls. Accordingly, at the closure of the deal, you purchase oil for cheaper than you sold it and, thus, make a profit.

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