What is short?Short
Borrow and sell first, then buy back to return it, betting the price will fall.
Animation · short
Learn “short” in an animated lesson
- CFDsGoing Long and Short with CFDs
Shorting a CFD is as easy as going long: if you're bearish, sell to open, and profit when the price falls.
- Futures BasicsHedgers and Speculators
Selling the same wheat future, a farmer with wheat is "buying insurance" while a trader without wheat is "placing a bet". The basis decides how precisely a hedge locks in the price.
- Futures BasicsGoing Long and Short with Futures
Shorting futures needs no borrowing: just sell the contract and profit when the price falls. Gains and losses for longs and shorts are perfectly symmetrical.
- Hedging StrategiesHedging Currency Risk: Locking In with Forwards
An exporter won't receive €1 million for 3 months. If the exchange rate falls, the profit vanishes. What are the trade-offs between a forward contract and an FX option?
- Hedging StrategiesWhat Is Hedging?
A farmer has a silo of wheat and fears prices falling before the harvest. Sell a futures contract, and the gains and losses on the two legs cancel out.
- Stock Trading: Next StepsGoing Long vs. Going Short
Step by step: borrow shares → sell → buy back → return. See how shorting profits from a fall, and why it's riskier.
Related terms
See how “short” works for yourself with an animation you can drag and play.
Go to “Going Long and Short with CFDs”