short position


Also found in: Dictionary, Thesaurus, Legal, Encyclopedia, Wikipedia.
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 ?
2) This form relates to the disclosure of short positions in compliance with amendments to MAR 1.
Financial institutions have avoided maintaining a short position above this limit.
If the short MA is higher by a certain filter than the long MA, a long investment position should be adopted, and if it is lower, a short position should be adopted.
Among other things, the SROs found that the firm failed to have in place adequate procedures to audit or review its computer systems to ensure that short position reports were prepared in a manner consistent with SRO rules; written procedures for the supervision of the steps to be followed by firm personnel for the preparation and submission of short position reports; and systems and procedures of follow-up and review adequate to ensure that the SROs were promptly notified after the discovery of the inaccurate reporting of short positions.
Had T closed the short position using the 1,000 shares purchased in 1995 rather than the newly purchased shares, or had T established a second short position as to the ABC stock before March 16, 1999, the 60-day requirement would not have been met; a constructive sale would have occurred on Jan.
There were 29 ECM securities with a short position in October and 11 ECM issues with a short position of 5,000 shares or more.
Pawson further commented that any discrepancy revealing a short position in the company's stock will result in a mandatory cert exchange program to force the short position holders to cover the negative balance.
A short position of 5,000 or more shares existed in 373 of the approximately 1,000 stocks and warrants traded on the Exchange.
A pair trade takes a long position in a somewhat undervalued security and a short position in a somewhat overvalued security that are correlated.
TR-5: Disclosure of Short Position relating to securities which are the
A short position of 5,000 or more shares existed in 384 of the approximately 1,000 stocks and warrants traded on the Exchange.
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.