short position

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Related to Short Positions: shorted

Short position

Occurs when a person sells stocks he or she does not yet own. Shares must be borrowed, before the sale, to make "good delivery" to the buyer. Eventually, the shares must be bought back to close out the transaction. This technique is used when an investor believes the stock price will drop.

Short Position

The sale of a security or derivative, or the state of having sold one or the other. It is important to note that a short position is not closed, and is applied only to sales where further action may be required. For example, one who has borrowed securities and has then sold them is said to be have a short position with respect to that security, because he/she must eventually return an equivalent amount of the borrowed securities. Likewise, one who has sold (or written) an option is in a short position, because the option may be exercised at a later date. See also: Long position, Close a position.

short position

1. A net investment position in a security in which the security has been borrowed and sold but not yet replaced. Essentially, it is a short sale that has not been covered. Also called short. Compare long position.
2. An investment position in which the investor either has written an option or has sold a commodity contract, with the obligation remaining outstanding. Also called short.

Short position.

If you sell stock short and have not yet repurchased shares to replace the ones you borrowed, you are said to have a short position in that stock.

Similarly, if you sell an options contract that commits you to meet the terms of the contract at some date in the future if the option is exercised, you have a short position in that contract.

short position

a situation where a dealer or MARKET MAKER in a particular COMMODITY, FINANCIAL SECURITY or FOREIGN CURRENCY is selling more than he is buying so that his working stock of the item becomes depleted (i.e. runs short).

short position

a situation where a dealer or MARKET MAKER in a particular COMMODITY, FINANCIAL SECURITY or FOREIGN CURRENCY is selling more than he is buying so that his working stock of the item becomes depleted (i.e. runs short). Contrast LONG POSITION.
References in periodicals archive ?
TR-3 (1): Disclosure of Disclosable Short Position relating to Securities
The three SROs found that Morgan Stanley failed to provide reasonable supervision of its business activities in reporting to the SROs short positions in securities and failed to establish and maintain adequate procedures and controls to ensure compliance with its reporting obligations.
Note: There is no guarantee that the use of long and short positions will succeed in limiting Quant Long/Short Fund's exposure to domestic stock market movements or other risk factors.
A pair trade takes a long position in a somewhat undervalued security and a short position in a somewhat overvalued security that are correlated.
Barrick's short position of about 12 million ounces of gold, believed to have been borrowed from central banks, long has been a major suppressing force against the gold price and against the price of gold mining shares, GATA says.
NASD's short interest report is a "snapshot" of total short positions as of the date of settlement of the month in question.
Disclosure: Officers, directors and/or employees of Zacks Investment Research may own or have sold short securities and/or hold long and/or short positions in options that are mentioned in this material.
This form relates to the disclosure of short positions in compliance with chapter 2 of the FSA's Financial Stability and Market Confidence sourcebook (FINMAR) .
Now that the pair has pulled back, the ratio of long to short positions in the EURUSD stands at -1.
Until the Fed`s moves take hold, Martin and Ragas' short positions are going to continue lacking a near-term negative earnings catalyst.
According to the latest Commitment of Traders (COT) report by the Commodity Futures Trading Commission, non-commercial traders on the New York Mercantile Exchange continued to increase their net short positions.
Short sellers sell shares they do not own, but borrow them to protect the transaction and/or eventually cover, or buy in, their short positions.