Definition of Going Short
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What does the term "going short" mean when it comes to the stock market? What is the definition of the term "going short"?
"Going short" is when you initiate a short position in a stock.
A short position is when you believe that a stock is going to drop in value, so you sell shares with the hope of buying them back at a lower price.
 "Going short" is, as you can probably guess, the opposite of "going long", which is when you buy a stock.
Here are a few examples of when you would use the term "going short":
Example #1: "XYZ reported weak earnings after the bell today. I fully expect that XYZ will drop 30-50% over the coming months, so I am planning on going short after the opening bell tomorrow."
Example #2: "XYZ's CEO and CFO announced that they are both leaving the company. This can't be good news, so I have decided that I am going short on XYZ over the next couple of days."
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