What is the meaning of Go short?

When you' Go short', you borrow shares of stock from your broker, sell the borrowed shares at their current market price, and pocket the money, minus commission. The reason you go short, which is also known as selling short, is because you expect the stock's price to decline in the near future. If it does, you can buy shares at the lower price and return the number you borrowed, plus interest, to your broker. The amount you make on the transaction depends on the difference between the price at which you sold and the price at which you can repurchase the shares, plus the amount of time you have to wait for the price to drop. However, there is always the risk that the price will remain stable or even increase, which could mean losing money on the transaction.

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APABarry Goldsmith. (2010). go short. Retrieved September 21, 2026, from http://smartdefine.org/go_short/definitions/1154968
ChicagoBarry Goldsmith. 2010. "go short" http://smartdefine.org/go_short/definitions/1154968 (accessed September 21, 2026).
HarvardBarry Goldsmith 2010, go short, Smart Define, viewed 21 September, 2026, <http://smartdefine.org/go_short/definitions/1154968>.
MLABarry Goldsmith. "go short" 21 October 2010. Web. 21 September 2026. <http://smartdefine.org/go_short/definitions/1154968>