How to short the Euro

 

Market Moves Staff - 12 Nov 2010

We show you how to short the Euro at a firm like IGIndex

This example takes you through a short-term position at IGIndex.

Say the EUR/USD price stands at 12837 - 12839.

You believe the euro will fall against the dollar over the short term and decide to 'sell' $10 per point at the bid price of 12837.

Against your expectations, the euro rises against the dollar by midday. IGIndex's quote is now 12855 - 12857 and you decide to cut your losses. You 'buy' $10 per point at 12857 to close your position.

The result

Loss on deal
Opening level 12837
Closing level 12857
Difference 20

Loss: 20 x $10 per point = $200






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