A/An _______ position is when an FX dealer enters into a forward contract to sell FX that is not held at that time.
A) arbitrage
B) long
C) short
D) dirty

Question

Quizplus · Accepted Answer

A short position involves selling an FX forward contract for FX that the dealer does not currently hold. This allows the dealer to lock in a price for the sale of the FX at a future date and reduce their risk from exchange rate fluctuations.

A/An _______ Position Is When an FX Dealer Enters into a Forward