[01100011]

and shorting something priced in a currency is effectively going long on the currency as well. If the USD takes a dive due to, idk, increasing populism from both major parties, stocks will do quite well in nominal terms. Your shorts will burn and you'll end up far worse than just staying in cash.

For most people, the best way to short is to just hold cash equivalents like short-term treasuries.

[skluug]

You can use the cash you get from shorting to invest in other assets. Shorting doesn’t require you to hold cash.

[stogot]

What is an example of shorting something not priced in a currency?

[tsycho]

Short the stock, go long the appropriate index.

eg: If you think NVDA is overvalued relative to the overall tech sector, you could short NVDA, go long QQQ.

And if you have a more opinionated trade in the same currency, eg: you think AAPL will be fine if the AI trade pops, you can do short NVDA, long AAPL.

Finally, an even more advanced version would be to go long on something else in the same sector, but which is less overvalued in your opinion. eg: Short ORCL, long NVDA.

[manquer]

Positions are not necessary to be single transaction. They can be multi-step trade.

For global currency risk (meaning on USD), You will have to hedge your shorts with a non currency long position which historically hold value during defaults/ runs etc. Assets like gold (ETFs/Gold bars) or real estate (REITs or physical land holdings) or rights to commodity revenue like oil, copper etc [1].

If the currency risk is not for USD, then mix of other currencies particularly USD would work well as as hedge.

Currency risk is independent of shorting, i.e. it is risk in Long positions as well, current may inflate faster than your position increases in value etc.

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[1] Commodity come with additional shorter term market volatility and risks - due their own supply/demand volatility and depend performance of economy.

However after assets like Gold, they will have highest correlation of returns against inflation as long the economy doesn't completely crash, because the demand for them is foundational

[loeg]

I don't think GP is suggesting any particular bet isn't priced in some currency, just that you're also taking currency risk you might not be aware of.