Short has a particular significance in relation to IG's platform. Here, we define short in general investing and explain what it means to you when trading with IG.
In trading, short describes a trade that will incur a profit if the asset being traded falls in price. It is also often referred to as going short, shorting or sometimes selling.
Shorting is the opposite of going long, or trading to incur a profit if your market increases in price.
The most well-known method of shorting is short selling. There are two main methods of short selling:
There are other ways of opening short positions. Digital 100 binaries offer a simplified form of option that do not require the trader to own the underlying asset, for instance.
As an asset could theoretically increase in price indefinitely, short selling requires careful risk management to prevent losses from overrunning. Find out more about managing risk.
We offer a variety of different ways to trade on markets that are moving lower in price. For example you can trade CFDs on a variety of markets, including traditional assets such as shares as well as interest rates, option prices or entire sectors.
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 79% of retail investor accounts lose money when trading CFDs with this provider.
You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage.