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You are here: Home / Potpourri / Going Short: What Does It Mean?

Going Short: What Does It Mean?

Going Short: What Does It Mean?
What does it mean to “go short” a commodity, stock, or index?It simply means: To sell.

To enter into a short position, you simply sell that asset.

If you sell some type of asset – that means at some point in the future, you have to get out of the position.

And to get out of a short position – you simply buy it back.

Another way of saying the same thing is:
In a short position, you will have a profit if prices decrease.

Conversely, in a short position, you will have a loss if prices increase.

Going short has unlimited potential profit as prices fall – and unlimited potential loss as prices rise.

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Filed Under: PotpourriTagged With: #Markets, #Trading

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