The most traditional way we trade and invest is buying (going long) a market.
This is where we buy a market at a low price and anticipate that the price will go up, where we will sell it at a higher price for a profit.
Short selling (or going short) is the opposite.
At the most basic level of understanding, it is where you make a prediction that the market will go down instead of up.
Let’s get into the MATI Trader term of the day:
What is short selling?
This is where you sell (go short) an underlying market at a high price, anticipate a drop in price where you’ll buy it back at a lower price for a profit.
How short selling works…
To understand this concept, I’m going to break it down into three explanations.
• One line
• Step by Step