What doesgoing short on stocks mean?
——————————————————————————– Answer If you buy a share with the expectation that the price will rise, you are “long” on the stock. On the other hand, if you expect the price of a stock that you do not own to go down you can even sell it. Then you would be going “short” on the stock. In case you are wondering how you can sell what you do not own, well, there is a system in the stock market under which you can borrow stocks just as you borrow money. When you short a stock, you hope to repurchase it later at a lower price and then return the shares to the owner and keep the difference. Shorting not only offers you a way to make money if a stock goes down, but it also acts as a hedge against falling markets. Of course traders who hope to benefit from any trend in the stock market, useshort positions to make money in a downtrend.
