Day Trading – Sell
In Day Trading profits can be made when the value of a currency is depreciating as well.
When a trader goes short, the aim is to buy the sold currency at a lower price than what it was initially sold for.
If EUR/USD was traded and the trader went short then it means they sold EUR and got USD in return. At the time of closing the trade, if the exchange rate falls they will be able to buy back the EUR for fewer USD than what they got paid at the time of selling.
This difference is the profit.