In the currency exchange market of the Magic Capital, the market had only been open for five minutes today when dozens of massive short-selling orders came crashing down without warning.
What is the concept of short selling, or going short?
For instance, if the exchange rate of Huaxia currency is 7, and you predict it will soon fall to 6.9, then you use 100 US Dollars to exchange for 700 Huaxia currency, during this time, you can earn interest on these 700 Huaxia currency.
Then, if the exchange rate successfully drops to 6.9 as you predicted, you could use 690 Huaxia currency to buy back 100 US Dollars, and the extra 10 Huaxia currency along with additional interest would be your pure profit.
Going long, on the other hand, is the opposite operation.
