Trading Class

Glossary › short position

Trading glossary · general

short position

A trade that makes money if the price goes down, by selling first and buying back later.

The fuller meaning

A position that profits when price falls: selling first and buying back later, directly or through futures, CFDs or options. Its stop sits above the entry, usually beyond resistance, and losses grow as price rises; shorting can carry borrowing or financing costs.

short position, also called short trade.

Related words

asset · broker · buyers · chart · day trader · entry · filter · forecast · historical data · instrument