What Does it Mean to Go Short a Oil Trading instrument?

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

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

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

Definition Going Short in Oil Trading

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

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