Final answer:
Going short in a futures position is a strategy where an individual commits to selling an asset at a preset price in the future, with the expectation that the asset's price will fall.
Step-by-step explanation:
An individual who goes short in a futures position is committing to sell an underlying asset at a predetermined price at a specified time in the future. To go short means that the individual is anticipating a decline in the price of the asset. By entering into a short futures contract, they aim to profit from the expected downward price movement. The process involves selling futures contracts now, with the obligation to deliver the asset at contract maturity. If the price does decline as expected, the short seller can then purchase the underlying asset at a lower price to fulfill the contract, thus profiting from the price difference. On the other hand, if prices rise, the short seller would incur a loss. This strategy is frequently used by traders and investors to speculate or hedge against future price fluctuations.