What is short selling in a Forex market?

[Ryan]

 

[Josh]

Hello Ryan,
Many times Forex investors make profits by buying a stock at a low price and holding it until its price rises when they will now sell it. The profit is the difference in the buying and the selling price of the stock.
As a beginner in such a market, probably this is the most usual way you will use to make a profit. You need to understand that you can also make a profit when the price levels are low.
In short-selling, you borrow your broker a financial tool and sell it at the present market price, hoping that the future price of it will be lower.
When the price if this instrument fall, a trader will buy it on the market and return the borrowed tool to the broker.
Here the profit that the trader will make is the difference between the selling price and the buying price. The selling price will be higher than the buying price.