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 ?
Here are the five largest cannabis short positions following Wednesday's volatile session:
(https://www.ccn.com/unsual-cryptocurrency-market-behavior-before-big-crypto-drop/) CCN stated regarding the massive short position: "Top analysts have been questioning why someone would take a $74,000,000 short position so quickly.
The SSR data shows that there were 210,341 net short positions reported from January 2013 to December 2016.
This partially reversed an increase the previous week of 57mn barrels, according to an analysis of position data published by regulators and exchanges which showed that money managers cut their short positions in WTI by the equivalent of 25mn barrels and in Brent by 11mn barrels.
was censured and fined for inaccurate short position reporting, while RBC Capital Markets faced disciplinary actions over conditioning an arbitration settlement on the customers' not fighting the firm's efforts to seek expungement.
Hedge fund managers seem to have reacted to the prospect of a short-covering rally after short positions reached exceptionally high levels.
Market-neutral fund managers aim to make more from their long positions than they lose in their short positions when the overall market rises, and to make bigger profits from their shorts than losses from longs when the market drops.
The latest Commitment of Traders Report (COTR) shows a reduction of long positions, accompanied by a significantly larger increase in fresh short positions (end of business 19 February).
-ainformation on significant net short positions shall be disclosed on a central web site
Commodity Futures Trading Commission shows currency speculators slightly trimmed their net short positions in the yen in the week ended April 3 to 65,108 contracts.
The research also found that 69% of respondents were concerned that short squeezes would intensify if the measures were implemented, meaning that if some participants know of others' short positions, they will be more likely to acquire a stock knowing that covering of the short position will need to take place and thus further raise the stock price, which potentially facilitates a squeeze on liquidity.
In its defence, the bank said that even though it regularly took short positions in CDOs and other synthetic instruments that it had designed, it did not know that the instruments were soon to lose value.