If you think the Pound is likely to fall against other currencies, you can make money by selling it. Several factors influence the value of a currency, including its economy and political stability. If a country’s economic growth slows down or heads into recession, this may weaken the currency and attract investors to short it. Political uncertainty, such as the Brexit referendum, can also cause the Pound to be volatile. If the Bank of England is expected to cut interest rates, this can also make the Pound less attractive to buy, which would reduce demand and lower its price.

Shorting Currencies for UK Traders: Key Techniques

The best way to trade the Pound is with a CFD broker like Shorting Currencies for UK Traders. We offer a range of trading products, including spread bets and contracts for difference (CFDs), which let you speculate on the direction of the market without owning the underlying asset. To start trading, open a free account and select GBP/USD from the list of available pairs.

When you’re ready to trade, click the sell button to open a short position. Remember that a short position is a risky investment and you could lose more than your initial deposit. Be sure to carefully research the market and understand your risk tolerance before placing a trade. The forex market is highly volatile and prices can move quickly. XTB is regulated by the Financial Conduct Authority (FCA) in the UK and offers £85,000 of FSCS protection for retail traders.