Going short means you believe the price of a currency will drop. To go short in the forex market, you only need to place a sell order. Let’s use a live example:
If the GBP/USD rate is 1.3021. This means 1 pound is equivalent to $1.3021. if you go short on the pound, you’ll sell it at this price. After the value goes down to 1.3000 and you buy the pair, you’ll have made 21 pips.
For a standard lot size (100,000 units), the value of 1 pip is 0.0001 / 1.3021 x 100,000 = $7.68. For 21 pips, that means you made $7.68 x 21 = $161.28.