Short selling in CFD and what you have to know
Short-selling is a common term and a trading practice in CFDs. It is always against the traditional norm of buying assets low and selling them high. This can be a very useful tool in trading. With short selling, traders always have the opportunity to find the market even when the prices or when the market is falling. Before you utilize this kind of trade, you must first understand how it works. The following point will help you understand it
Short selling and what it is
Short selling is also referred to as short. It can also be referred to as going short. This is just a trading strategy that can be used by traders in taking advantage of the markets. Therefore, even when the market is falling, you can always find a suitable opportunity to sell. Traders can short-sell assets borrowed hoping that the prices will go down. When the prices go down, they can then buy them for a profit.
Borrowing an asset will always come at a cost. The cost is usually a smaller percentage of the price of the asset. The price can be as low as 5%.