short position


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Related to short position: Long position, short selling

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 ?
Both Brent and WTI prices have increased by more than $5 per barrel, around 13 per cent, since August 2, as hedge funds have scaled back short positions and started to turn more bullish.
Since May 31, hedge funds have added 197 million barrels of crude short positions and 12 million barrels of gasoline shorts.
GATA urges NovaGold shareholders not to tender their shares to Barrick before Barrick closes its short position in gold.
Pink Sheets:WTAF) has previously expressed its concern about the speculative and undocumented comments made about the alleged effect of short positions on Wataire's share price.
Jacobs, explains, "I feel that our company's inclusion on this Threshold Security List supports our contention that there have been substantial naked short positions that may have caused failed deliveries of SunnComm shares resulting in a substantial dilutive effect on shareholder equity.
Com research indicates a "long" strategy (selling puts, buying calls, closing short positions, or outright buying FLEX) at current levels offers traders a nice chance for a profitable trade.
Com research indicates a "long" strategy (selling puts, buying calls, closing short positions, or outright buying INTC) at current levels offers traders a nice chance for a profitable trade.
Com research indicates a "long" strategy (selling puts, buying calls, closing short positions, or outright buying AMAT) at current levels offers traders a nice chance for a profitable trade.
REUTERS) LONDON: Hedge fund managers had already closed out many of their bearish short positions in crude oil before ministers of the Organization of the Petroleum Exporting Countries (OPEC) and their non-OPEC counterparts met in Vienna on May 25, according to data from regulators and exchanges.
Most of the adjustment has come from the short side of the market as hedge funds have covered short positions established earlier in the summer.
Historical Charts of Speculative Forex Trading Positioning EURUSD - The ratio of long to short positions in the EURUSD stands at -1.
But now the liquidation of old long positions is being replaced by the establishment of new short positions as fund managers try to capitalise on the downward cycle in prices.