When you want to go short something, it means that you want to sell a particular asset. The term is the opposite of going long, which is when you want to buy something.

When Are Investors Going Short?

When you’re bearish on an instrument, you want to go short in expectation of the price to depreciate and buying it at a lower price, thus making a profit. For example, if you sell a stock, then you’re going short that particular stock because you expect the price to decrease in the future and it’s said that you are short or have a short position.

You’re going short also when you sell a derivative like a CFD, a futures contract or an option.