A speculator engages in a short position by initially selling a currency (that she does not own) at a high price and then buying it back later at a low price.

Question

Quizplus · Accepted Answer

This is an accurate description of how a speculator engages in a short position. By selling a currency at a high price and buying it back later at a low price, the speculator profits from the currency's decline in value.

A Speculator Engages in a Short Position by Initially Selling