Current exchange rate (Feb 15, 2018) is .8011 Euro/$. You speculate the exchange rate will be .8210 Euro/$ on Mar 15, 2018. You plan to make money in the currency exchange market through the 'Short-selling' method. In this case, the first step is you borrow .

Explanation:

You borrow euros to buy dollars.

Assume you borrow $100 euros and buy Euros at the rate 0.8011Euro/$:

That means that, on Feb 14, 2018,  with 100 euros you buy $124.83.

Then, you keep the dollars until Mar 15, 2018 and sell them at the rate of 0.8210 Euro/$:

In that way, you converted 100Euro into 102.49Euro in 30 days.

That is a return of [102.49 - 100] / [100] × 100 = 2.49%. Then, if you borrowed at a rate less than 2.49% per month, you earned by speculating through the "Short-selling" method.

i might look it up later.

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