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 notes that much of the increase in the price of gold in recent years has been attributed to the reduction of hedges, the closing of short positions, by gold producers.
NASD's short interest report is a "snapshot" of total short positions as of the date of settlement of the month in question.
Such failed trades are expected to be rectified promptly, but the industry has not been diligent in rectifying these failed trades or open short positions.
In addition, we are tracking the trading activity in our stock, by day, by transaction, and by broker; and we are tracking the short positions by broker.
But short positions increased by almost 36 million, as many more managers positioned themselves for a momentum-driven drop in prices coupled with mounting concerns about weakening demand fundamentals.
If the Company's research and examination does find an imbalance in regards to the reported short positions, the company will act to correct the problem.
At the core of this scheme was defendants' preparation of a massive and fraudulent disinformation campaign attacking the stock of Biovail and other targeted publicly-traded companies, including the preparation of ostensibly objective, but in fact biased, analyst reports; defendants' accumulation of short positions in the stock of those companies -- i.
And in theory, the more short positions there are to cover, the stronger the short covering rally would be.
Now that the pair has pulled back, the ratio of long to short positions in the EURUSD stands at -1.
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.