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Short — definition & meaning

Selling an asset you expect to fall, aiming to buy it back cheaper.

To go short is to sell an instrument you do not own (or via a derivative like a CFD) because you expect its price to fall. You profit if it drops and buy it back cheaper; you lose if it rises.

Shorting lets traders try to profit in falling markets, but the risk can be large: a price can keep rising indefinitely, so losses on a short are theoretically unlimited unless you use a stop-loss.

The information on Trding.io is for general information only and is not investment advice. Trading involves a real risk of losing money, and most retail traders lose. Never trade money you cannot afford to lose.

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