Going Short

Going short is a financial term used to describe a trading strategy in which an investor sells a security or asset that they do not own. This is done with the expectation that the price of the security or asset will decrease in the future, allowing the investor to buy it back at a lower price and make a profit. Going short is also known as short selling, shorting, or shorting a stock.

History of Going Short

The practice of going short has been around since the early days of stock trading. It was first used by traders in the 1700s to speculate on the price of stocks. The practice was popularized in the early 1900s by speculators such as Jesse Livermore and Bernard Baruch. In the 1920s, the U.S. Securities and Exchange Commission (SEC) began regulating short selling, and the practice has been regulated ever since.

Today, going short is a popular trading strategy used by both professional and amateur investors. It is used to speculate on the price of stocks, commodities, currencies, and other financial instruments. It is also used by investors to hedge their portfolios against market downturns.

Comparison of Going Long and Going Short

Summary

Going short is a financial term used to describe a trading strategy in which an investor sells a security or asset that they do not own. This is done with the expectation that the price of the security or asset will decrease in the future, allowing the investor to buy it back at a lower price and make a profit. Going short is also known as short selling, shorting, or shorting a stock. For more information about going short, investors can visit websites such as Investopedia, The Balance, and Yahoo Finance.

See Also

• Going Long
• Short Selling
• Short Squeeze
• Margin Trading
• Bear Market
• Bull Market
• Day Trading
• Options Trading
• Hedging
• Speculation

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