Reply To: What does ‘going short’ mean in trading?

#199333
Steve

    To go short (or short selling) means you’re betting that the price of an asset will go down, not up. So instead of buying low and selling high, you’re doing the opposite: you sell high first, then aim to buy low later to profit from the drop.

    CFDs are a super common way to short various assets without borrowing them. You could also buy put options or open a margin account to short stocks.

    The big thing to remember with shorting is that losses are effectively uncapped because the price can keep rising.