Definition Going Short in Commodity Trading

In commodity trading as trader you will be selling one commodity trading for another. When you sell commodity this is known as going short.

Going short is therefore just another term used to refer to selling of commodity.

You will use commodity charts to determine when to go short - you will go short if the commodity prices on the commodities charts are moving in a downward trend direction.

Definition Going Short in Commodities Trading

If the commodity price is going down we sell commodity, this is referred to as going short. When the commodities trading market commodity trend is going down it is referred to as a bearish market. The example shown below shows a downward commodity trend, this is when a short sell commodity trade is placed and a trader goes short. The short sell is identified by drawing a downward commodity trend-line on a commodities trading chart. The example shown below shows a short sell signal.

What Does it Mean to Go Short a Commodity Trading instrument? - Definition Going Short in Commodity Trading