What is foreign exchange short selling?

2023-06-05
Summary:

Discover correlations between forex short selling and market gaps, revealing significant differences in prices between consecutive trading days.

Gap refers to a fault formed by two consecutive candlesticks (or bar curves) representing the changes in the exchange rate of a currency.


Usually, according to the time cycle adopted by forex traders, when one candlestick chart ends, the next candlestick chart is about to begin forming; At this point, there will be an overlap between the closing price of the completed candlestick chart and the opening price of the new candlestick chart.


However, if there is a gap formed between the closing price of the closed candlestick chart and the opening price of the new candlestick chart, there will be a significant gap, and the new candlestick chart may appear above or below the closed candlestick chart.

What is foreign exchange short selling? Is Foreign Exchange Shortfall a Foreign Exchange Gap?

Is there a distinction between a Forex Shortfall and a Forex Gap?

Forex short selling and forex gap are a concept that usually refers to a significant gap or discontinuity in forex prices between two adjacent trading days.


Forex short selling refers to a significant gap in forex prices between the previous day's closing price and the next day's opening price, i.e. skipping a certain price range. For example, if the euro/dollar exchange rate is 1.1100 at the close of Friday and 1.1150 at the opening of Monday, it can be said that there has been a forex short.


Forex gap refers to the same phenomenon, where forex prices show significant gaps or interruptions between two adjacent trading days, i.e. skipping a certain price range.


Therefore, the concepts of forex short selling and forex gap are the same, both indicating a significant gap or discontinuity in prices between two adjacent trading days.


【 EBC Platform Risk Reminder and Disclaimer 】: There are risks in the market, and investment needs to be cautious. This article does not constitute investment advice.

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EBC Financial Group is owned and operated by EBC Group.
EBC Financial Group (SVG) LLC is authorized by the St.Vincent and the Grenadines Financial Services Authority(SVGFSA),and the company registration number is 353 LLC 2020. with registered address at Euro House, Richmond Hill Road, Kingstown, VC0100, St. Vincent and the Grenadines.
EBC Group Limited (BVI), with registered address at Trident Chambers, P.O. Box 146, Road Town, Tortola, British Virgin Islands is owned and operated by EBC Group.
Other Relevant Entities
EBC Financial Group (UK) Limited is authorised and regulated by the Financial Conduct Authority. Reference Number: 927552. Website： www.ebcfin.co.uk
EBC Financial Group (Australia) Pty Ltd (ACN: 619 073 237) is authorised and regulated by the Australian Securities and Investments Commission (Number: 500991). EBC Financial Group (Australia) Pty Ltd is a related entity of EBC Financial Group (SVG) LLC and are managed separately. EBC Financial Group (Australia) Pty Ltd provides general financial advise services in Australia.
EBC Financial Group (Cayman) Limited is licensed and regulated by the Cayman Islands Monetary Authority (Number: 2038223). website: www.ebcgroup.ky
Business Address: Level 17, Dashwood House, 69 Old Broad Street, London, England, EC2M 1QS,United Kingdom.Email Address : [email protected]. Telephone : +44 20 3376 9662
Disclaimer: EBC Financial Group explicitly does not participate in any cryptocurrency activities or offer Crypto Contracts for Difference (CFDs). Our financial services solely pertain to traditional instruments. Clients are advised that any references to crypto-related services using the EBC name are inaccurate and unauthorized. Any reference to past performance is not indicative of future performance. The information contained in this website is provided for reference only and does not constitute any investment advice.
Regional Restrictions: EBC does not offer any services to citizens and residents of certain jurisdictions including: Afghanistan, Belarus, Burma (Myanmar), Canada, Central African Republic, Congo, Cuba, Democratic Republic of the Congo, Eritrea, Haiti, Iran, Iraq, Lebanon, Libya, Malaysia, Mali, North Korea (Democratic People's Republic of Korea), Russia, Somalia, Sudan, South Sudan, Syria, Ukraine (including Crimea, Donetsk, and Luhansk Regions), the United States, Venezuela, and Yemen. For more information, please check out our FAQs.
Compliance Disclosure：The website can be accessed globally and is not specific to any entity. Your actual rights and obligations will be determined based on the entity and jurisdiction that you choose to be regulated.There may be local laws and regulations which prohibit or limit your rights to access, download, distribute, disseminate, share or otherwise use any or all of the documents and information published on this website.
Risk Warning: Trading Contracts for Difference (CFDs) are complex financial instruments and come with a high risk of losing money rapidly due to leverage. Trade on margin carries a high level of risk and may not be suitable for all investors. Before deciding to trade Forex and CFDs, you should carefully consider your trading objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial trading capital. We recommend that you seek independent advice and ensure you fully understand the risks involved before making any investment decision. Please read the relevant risk disclosure statements carefully before trading.
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